XRP Open Interest Surges 41% Gaining Over $1 Billion in a Week

According to data from Glassnode, XRP futures open interest has risen from $2.42 billion to $3.42 billion in a single week as of May 13. This represents an over $1 billion surge, reflecting a 41.6% rise, and indicates a substantial influx of capital and heightened speculative activity.

As of the time of writing, May 14, XRP is trading at $2.58, a notable increase representing a nearly 20% gain over the past week. This impressive performance outstrips the broader cryptocurrency market, which has experienced a 13% uptick during the same period.

XRP Eyes Breakout Following Price Surge

According to a CoinTab report, traders are becoming less interested in XRP. The amount of Exchange Futures Open Interest has been decreasing since May 2. This decrease happened around the same time the price started to fall. A continued drop in open interest could cause the price to decline even more.

The indicators on the daily chart suggest a negative outlook. Last week, the MACD showed a negative crossover. The 12-day and 26-day EMAs have declined as trading conditions have worsened.

Open interest, representing the total number of active futures contracts yet to be settled, often provides insight into market sentiment. An increase in open interest alongside a price rise typically signifies new capital entering the market, rather than investors covering or unwinding existing positions.

This pattern, observed with XRP’s recent price breakout, suggests a strong directional conviction among traders. Moreover, the technical outlook for XRP further supports this positive sentiment. The asset is currently trading above all major short- and long-term moving averages, including the 10-day, 50-day, and 200-day averages.

Investors Sentiment

Besides the positive signs on the charts, big investors seem to be more interested in XRP. The XXRP ETF, which lets these investors invest in XRP, has seen funds trooping in for five weeks straight. According to ETF.com’s flow chart, the fund gained $14 million last week, up from $10 million the week before. It now manages over $99 million in total.

The ongoing interest in the XXRP ETF is interesting because its yearly fee is 1.89%, almost twice as much as some popular Bitcoin ETFs. This shows that big investors want products related to XRP.

This increase in interest coincides with rumors that the SEC might approve XRP ETFs that directly hold XRP. Polymarket estimates the chance of approval to be 80%. JPMorgan analysts think XRP ETFs could attract $8 billion in the first year, more than Ethereum ETFs did after they were approved in September 2024.