XRP open interest surges over $1B in a week as price eyes major breakout

XRP is trading at $2.58, marking a nearly 20% gain in the past week as open interest rose more than 40%. This 20% one-week rise places it ahead of the broader cryptocurrency market, which has seen a 13% uptick over the same period. The surge in price has been matched by a sharp increase in derivatives activity. In just one week, futures open interest for XRP (XRP) has increased from $2.42 billion to $3.42 billion, according to a May 13 post on X from Glassnode. This $1 billion spike, or a 41.6% rise, shows growing influx of capital and increased speculative activity, suggesting that traders are positioning for a major move. $XRP Futures Open Interest has surged by over $1B in the past week, rising from $2.42B to $3.42B (+41.6%). This sharp increase in leverage coincides with a price rally from $2.14 to $2.48, suggesting elevated speculative activity and growing directional conviction, pic.twitter.com/QbsaOM9oxE Open interest refers to the total number of active futures contracts that have not yet been settled. When open interest climbs alongside price, it typically reflects new money entering the market, rather than short-covering or position unwinding. In line with the most recent price breakout, this pattern suggests that traders have a strong directional conviction in XRP. This sentiment is supported by XRP’s technical outlook. The asset is trading above all major short- and long-term moving averages, including the 10-day, 50-day, and 200-day averages. The price has continued to move strongly, and momentum indicators show that the pressure is continuing to rise without reaching overheated levels. At 68, the relative strength index is getting close to but not yet past the overbought zone, indicating that there is still potential for the current trend to continue. Other important indicators, like the moving average convergence divergence, point to continued upward movement. Alongside chart strength, institutional demand appears to be growing. The XXRP ETF, which provides institutional investors with exposure to XRP, has seen inflows for five weeks in a row. The fund brought in $14 million last week, up from $10 million the previous week, according to data from etf.com. The fund’s total assets under management now amount to over $99 million. This is notable considering that its 1.89% annual management fee is almost twice as high as some of the more well-known Bitcoin (BTC) ETFs. Despite this, investor interest is still high, suggesting that there is a greater demand for products linked to XRP. This rise in demand coincides with mounting speculation that spot XRP ETFs will soon be approved by the U.S. Securities and Exchange Commission. Platforms like Polymarket now show that the odds of approval are 80%. According to JPMorgan analysts, XRP ETF inflows could reach $8 billion in the first year, surpassing Ethereum (ETH) ETF inflows since their approval in September 2024. Because of its strong technical structure, growing institutional interest, and rising open interest, XRP looks ready for a significant breakout if the current trends continue.