XRP at 3 year high, open interest all time high

XRP price is at levels not seen in three years as the larger crypto market gains from expected future political tailwinds in the world’s largest economy.

Data from Binance shows the ripple-made token is up more than 80 percent for the week to $1.16, despite losing 16 percent of its value from a Saturday peak of $1.26. Since President-elect Donald Trump won the U.S. election, the coin has been on a bullish momentum. Ripple now has a market valuation of $64 billion and is ranked 6th in terms of market valuation in the crypto market.

The futures market for the sixth-largest cryptocurrency is the clearest example of this, with open interest reaching all-time highs of just under $2 billion, according to CoinGlass data. The number of open futures or options contracts that have not yet been closed or settled is known as “open interest.”.

A spike in speculative trading, where traders wager on future price movements, is frequently reflected in high OI.  This may trigger more volatility because leveraged positions magnify responses to market news or events.

The recent surge in altcoin’s open interest to record levels indicates a rise in traders’ interest, which is frequently a sign of market bullishness.

As traders position themselves to take advantage of expected price movements, the activity demonstrates XRP’s growing appeal and dynamic position within the trading community, indicating speculative optimism.

Additionally, XRP’s technical analysis is extremely bullish. A bullish trend is confirmed by the token’s trading substantially above the 50- and 200-day exponential moving averages (EMAs). Furthermore, XRP could break through the September 2021 record of $1.4 if the $1.2 support line isn’t breached in the mid term., which would only lead to a further price breakout above $1.5. However, if token can’t maintain the key support line at $1, it may drop even lower to $0.88, which would then trigger the $0.82. level.

This buy signal comes amid rumors that Securities and Exchange Commission Chair Gary Gensler may resign soon after Trump’s inauguration on January 20. Numerous industry insiders claim that Gensler has continued its “crusade” against digital assets companies, such as Ripple. Investor interest in several digital assets including meme coins, is still leading the market rally in overall performance.