The XRP token has risen by nearly 10% over the past week. While this increase was supported by improved sentiment among cryptocurrency investors, a key development also reinforced this upward momentum.
As a result, institutional demand for the altcoin has increased. This enhances the positive sentiment among token holders and indicates the potential for further gains in the short term.
XRP's legal victory sparks institutional collapse
On August 7, an appeal to the Second Circuit Court was acknowledged for a joint withdrawal of the SEC's appeal and Ripple's mutual appeal in the long-standing XRP case. This filing ends one of the most closely watched law enforcement battles in the history of digital currencies.
With the growing retail demand for the altcoin steadily increasing following this development, institutional appetite has also risen. This is evident in the increased open interest in XRP futures on the Chicago Mercantile Exchange (CME).
According to Glassnode, the metric closed at its highest level this year at 287,200 XRP on August 12, indicating increased participation from larger market players.
Active institutions dominate the CME XRP futures market, seeking regulated exposure to the token.
Therefore, the rise in open positions indicates that these investors are actively increasing their positions. This could enhance buying pressure and bolster the altcoin's upward momentum in the short term.
Additionally, XRP has consistently seen positive funding rates since June 28, indicating that traders continue to pay a premium to maintain their long positions. At the time of writing this report, this metric was at 0.0119%, according to Coinglass data.
XRP Funding Rate.
The funding rate is a periodic payment between traders in perpetual futures contracts to keep prices aligned with the spot market.
When its values are positive like this, long position holders are covering their short positions, indicating that most traders are betting on further price increases.
Breaking the $3.33 level could lead to XRP's price rising to $3.66.
The price of XRP has risen by 3% over the past day and is trading at $3.22 at the time of publication. If demand increases, XRP may extend its price gains towards $3.33. Breaking this barrier could pave the way for $3.66.
XRP Price Analysis
However, sellers may be able to cause a decline in the altcoin's price towards $2.99 if they regain control.
Summary
It seems that XRP is experiencing a support surge from several fronts: improved sentiment in the cryptocurrency market, increased institutional interest through futures contracts on CME, with technical signals suggesting the possibility of continuing the upward trend toward $3.66 if it breaks $3.33. However, investors remain exposed to risks associated with market volatility and regulation, necessitating close monitoring of developments and emphasizing the importance of making financial decisions based on risk analysis.
Stay tuned for more cryptocurrency news
#Treehouse @Treehouse Official
#BounceBitPrime @BounceBit _bit#humafinance @Huma Finance 🟣 ance
#lagrange @Lagrange Official