A popular cryptocurrency on hot coals.. Is the price about to explode soon?

$BTC $BTC $BTC #BinanceAlphaAlert #bitcoin #BitcoinDunyamiz #BinanceSquareTalks #CEXvsDEX10

Investing.com - Market observers believe that the sharp increase in the open interest volume for XRP contracts reflects a rise in speculative activity, hinting at a potential price breakout in the near future, as the currency is trading around the $2.20 level on Tuesday morning.

Ryan Li, the chief market analyst at Bitget, stated: "Open interest in XRP jumped to nearly $5 billion (over the weekend), indicating increasing speculative activity as traders take large positions in the derivatives market."

He added: "This rise suggests potential strong momentum, as market participants prepare for a decisive move."

Open interest refers to the number of open or unsettled contracts in the derivatives market, such as futures or options. It represents the number of contracts that are still 'alive' and have not been liquidated or closed.

Illustrative example: If a trader opens a contract to buy Bitcoin at a certain future price, and another trader opens a corresponding contract to sell, this is considered one open contract and is added to the 'open interest'. If either party decides to close their contract, the number of open contracts decreases.