Following US President Donald Trump’s victory in November 2024, the rally in XRP, one of the altcoins that rose the most along with Bitcoin )=, has slowed down.
XRP, which rose to over $3 with a big rise, fell below $2 due to tariff tensions in April.
After gaining $2, XRP continued to stay above this level, while the XRP open interest approached $5 billion.
While this indicates increased speculative activity in the derivatives market, it is also seen as a sign that strong volatility may be experienced in XRP.
Speaking to CoinDesk, Bitget Chief Market Analyst Ryan Lee stated that XRP open interest has risen to around $5 billion.
Ryan Lee warned investors who are short, stating that if the increase in XRP open interest is combined with a possible XRP price increase, a short squeeze could occur.
“Over the weekend, XRP open interest rose to nearly $5 billion. This means that investors engaged in significant speculative activity in the derivatives market.
“Such a rapid increase in open interest is indicative of strong potential momentum as market participants prepare for decisive moves.”
In contrast, the analyst said that long positions could be in danger if there is no clear catalyst to push the XRP price higher, and that long positions could be liquidated en masse.
This is also likely to increase downward pressure on the XRP price.
“Without a clear catalyst for XRP, open interest could be liquidated in either direction. If long positions are liquidated, downside pressure could intensify,” Lee said.
*This is not investment advice.
Continue Reading: What to Expect for XRP Price in the Coming Days? Pump or Dump? Analyst Explains All Possibilities!
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Author: NixCoin
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