XRP open interest has surged past $3.4 billion in just a week, a 41% jump that shows just how much speculative capital is pouring in as the token gains nearly 20%. This sudden spike is outpacing market growth and putting XRP squarely in the sights of institutional investors and derivatives traders. As the asset teeters on the edge of a potential breakout, this is no surprise.
$1 Billion Capital Influx Signals Strong Trader Conviction
According to Glassnode, Open interest, which measures unsettled futures contracts, jumped from $2.42 billion to $3.42 billion between May 6 and May 13. The $1 billion increase in just seven days is a clear sign of fresh capital entering the derivatives market and not just position unwinding or short squeezes. When rising open interest aligns with price gains, as it does here, it usually indicates growing trader confidence in a directional move.
What sets this apart from a temporary pump is the market’s real liquidity supporting this move. XRP’s consistent performance above its 10-, 50- and 200-day moving averages is a big part of that story.
Traders Double Down as XRP Open Interest Climbs Over $3.4B — What’s Fueling the Surge?
Technical Indicators Show No Signs of Exhaustion
XRP’s technical structure remains robust. The relative strength index (RSI) is at 68-right below the overbought threshold of 70. That means momentum is high but hasn’t peaked yet. In fact, XRP’s MACD trend line continues to rise, pointing signs at a bullish outlook without concrete divergence or reversal signals.
Glassnode’s derivatives metrics show that leveraged traders aren’t just reacting to short-term price swings, they’re betting on sustained upside. Funding rates remain positive but not overheated, indicating strong, steady demand rather than speculative mania.
Institutional Appetite Strengthens with ETF Inflows
Retail investors are optimistic about XRP, but institutional investors are even more telling in their response. Reports say the XXRP ETF, one of the few institutional-grade vehicles offering exposure to XRP, has seen five consecutive weeks of inflows. Last week alone, the fund attracted $14 million, more than the week before, according to ETF.com.
This is notable given the ETF’s high annual management fee of 1.89%-nearly double that of most Bitcoin ETFs. Yet assets under management have climbed to $99 million, showing investors are willing to pay a premium to get exposure to XRP as optimism around a potential spot ETF approval grows.
Spot ETF Approval Hopes Push Speculative Bets Higher
Speculation around a potential U.S. Securities and Exchange Commission (SEC) approval of a spot XRP ETF has added another layer of bullish momentum. Prediction market Polymarket currently estimates an 80% chance of spot ETF approval in 2025, an increased confidence among crypto investors and institutional participants.
Analysts recently noted in a client note that a spot XRP ETF could bring in “up to $8 billion in inflows in the first year”, more than the Ethereum ETFs launched in 2024.
XRP’s 20% weekly gain isn’t just impressive, it’s beating the wider crypto market which is up 13% in the same period. This has helped XRP break through previous resistance and stay ahead of the pack.
Traders Double Down as XRP Open Interest Climbs Over $3.4B — What’s Fueling the Surge?
XRP is currently trading at $2.61. With derivatives markets heating up and liquidity deepening, it’s looking good for a breakout if we assume no major regulatory or macro issues in the short term.
Conclusion: XRP is Ready to Make Its Move
With record XRP open interest, strong fundamentals, and institutional interest via ETFs, if current trends continue, and especially if a spot ETF is approved, XRP could test its multi-year highs.
However, risks remain. ETF approvals are not guaranteed and any general market volatility could derail the current momentum. But for now, traders and institutions are seemingly aligned.
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FAQs
What does rising XRP open interest mean?
Rising XRP open interest, especially with price up, means new capital is coming in and traders are confident of further price movement.
Why is XRP beating the broader crypto market?
XRP’s stronger technicals, institutional ETF inflows and ETF approval sentiment have pushed it ahead of the rest in the past week.
What’s the significance of the XXRP ETF inflows?
The XXRP ETF has seen 5 weeks of positive inflows, despite a higher than average management fee.
Is XRP overbought at current levels?
With an RSI of 68, XRP is getting close to overbought but hasn’t crossed yet, so there’s still room to go up if momentum continues.
Will an XRP spot ETF be approved?
Not confirmed but speculation is high. Polymarket has an 80% chance of approval and analysts are projecting up to $8 billion in first year inflows if approved.
Glossary
Open Interest: The total number of’ open futures contracts’ that have not been settled.
RSI (Relative Strength Index): A momentum indicator to measure the’ magnitude of recent price changes to determine overbought or oversold conditions.
MACD (Moving Average Convergence Divergence) is a trend-following indicator that shows the relationship between two moving averages.
ETF (Exchange-Traded Fund): A type of security that tracks an index, sector, commodity or other assets and can be traded like a stock.
Funding Rate: A fee paid between traders in futures markets to maintain price parity between futures and spot prices.
Sources
Glassnode
ETF.com
TradingView
Polymarket
Disclaimer: This is for ‘informational purposes only and not investment or legal advice. Cryptocurrency investments are volatile and carry risks. Please consult a financial advisor before ‘investing.
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