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XRP has surged to $2.58, gaining nearly 20% over the past week while open interest in its futures contracts rose by over 40%. This impressive one-week performance outpaces the broader cryptocurrency market, which recorded a 13% increase during the same period. The rise in price has been accompanied by heightened activity in the derivatives market.

Futures Open Interest Reflects Growing Speculation

Over the past week, XRP futures open interest increased significantly, climbing from $2.42 billion to $3.42 billion—a $1 billion spike or a 41.6% rise. This data highlights a growing influx of capital and increased speculative activity, suggesting that traders are positioning for a major move in the cryptocurrency’s price.

Open interest refers to the total number of active futures contracts that remain unsettled. When open interest rises alongside price, it typically signals new money entering the market rather than short-covering or unwinding positions. This trend, observed during the recent price breakout, indicates strong directional conviction among traders in XRP.

Technical Indicators Show Strength

XRP’s technical outlook supports the current bullish sentiment. The cryptocurrency is trading above all major short- and long-term moving averages, including the 10-day, 50-day, and 200-day averages. Momentum indicators also suggest continued price pressure without signs of overheating.

At a relative strength index (RSI) value of 68, XRP is approaching the overbought zone but has not yet surpassed it, indicating room for further upward movement. Additionally, the moving average convergence divergence (MACD) points to sustained bullish momentum, reinforcing the positive outlook.

Institutional Demand Rises

Institutional interest in XRP is growing steadily. The XXRP ETF, which offers institutional investors exposure to XRP, has experienced inflows for five consecutive weeks. Last week alone, the fund attracted $14 million, up from $10 million the previous week, bringing its total assets under management to over $99 million.

Despite its higher annual management fee of 1.89%—almost double that of popular Bitcoin ETFs—investor interest remains robust. This suggests increasing appetite for XRP-related products among institutional players.

Speculation Around Spot XRP ETFs

The rise in institutional demand coincides with speculation surrounding the potential approval of spot XRP ETFs by the U.S. Securities and Exchange Commission (SEC). Analysts estimate an 80% chance of approval, bolstered by platforms like Polymarket. If approved, JPMorgan analysts predict XRP ETF inflows could reach $8 billion in the first year, surpassing Ethereum ETF inflows since their approval in September 2024.

Strong Indicators Point to a Potential Breakout

With its solid technical structure, increasing institutional demand, and rising futures open interest, XRP appears positioned for a significant breakout if current trends persist. Investors and traders are closely monitoring these developments for further opportunities.

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