The XRP Futures market on CME reached a record interest level, creating new bullish expectations for XRP amidst rising institutional attention.
The unprecedented increase in trading volume of XRP Futures on CME, along with the selling reduction from large sharks, raises the question: Can XRP recover strongly in the near future?
MAIN CONTENT
The trading volume of XRP Futures on CME has reached a new high, reflecting significant confidence from institutional investors.
Overall demand for the XRP Futures market is adjusting downward, similar to the recent price decline across several major exchanges.
Changes in the behavior of large sharks and the competition between XRP and LINK continue to create attractions and volatility in the market.
What is the new record trading volume of XRP Futures on CME?
CME reports an Open Interest level of XRP Futures reaching nearly 12 million XRP, equivalent to a value of $9.02 billion, marking the first time this market has broken the previous record regarding institutional attraction to XRP.
"This is a clear sign that confidence is increasing in the market."
– Chicago Mercantile Exchange, as published on the official X account on August 23, 2024.
This leap occurs as the market anticipates the likelihood of a spot XRP ETF approval in the United States. The record Open Interest demonstrates that institutional investors have shown exceptional interest in XRP, laying the groundwork for potential surprising moves ahead.
Experts assess that this is a strong signal of the market's maturity and could form a new FOMO (Fear Of Missing Out) wave if the XRP spot ETF is approved in the near future (CoinDesk, 2024).
What is the motivation behind the breakout growth of XRP Futures?
The strong growth of XRP Futures on CME stems from investors' expectations for the approval of a spot ETF, alongside the notion that XRP is increasingly being accepted at a deeper level within the traditional financial sector.
Investors remain optimistic thanks to CME's transparent and standardized trading system, placing significant trust in XRP's recovery potential after a long period of price adjustment.
Evidence shows that many investment funds and large institutions are continuously increasing their positions on CME, indicating their expectations for a long-term growth cycle for XRP if the spot ETF product is approved (Bloomberg Crypto, 2024).
Is the overall demand for XRP Futures declining?
Although CME recorded a surge, overall demand for XRP Futures in the market has decreased in recent days, leading to a general price decline across several major exchanges.
Data from CoinGlass shows that from a peak of nearly $10 billion in Open Interest at the end of July, the total open position of XRP Futures has decreased to $7.3 billion as of August 22, 2024. The price of XRP has also dropped 23% from $3.6 to $2.8.
The price level of $2.8 was once a strong support area in Q3 and is now a major question: Can this area continue to hold or will it break if institutional cash flow declines?
What role does CME play in the XRP Futures market landscape?
Globally, CME, despite ranking fourth in XRP Futures trading volume, behind Bybit, Binance, and Bitget, holds a unique position as a platform specifically for institutional investors.
CME's prominent success is becoming a benchmark and "yardstick" for institutional investor interest in XRP, something that other exchanges rarely achieve with a primarily retail investor clientele.
Experts believe that the strong growth of XRP Futures on CME could create a ripple effect, prompting global investment institutions to reassess XRP's position and consider expanding their portfolios when the spot ETF is approved (FT Markets, 2024).
How are the shark investors acting?
Two large shark groups holding between 10 million to 1 billion XRP have significantly reduced their selling pace compared to July and early August, helping to stabilize the market.
If the sharks continue to return to strong buying, a strong reversal and recovery of XRP is entirely possible.
Data from Santiment records that after a strong sell-off period, selling orders have significantly decreased, reinforcing expectations for an upcoming recovery, especially when combined with institutional attraction from CME.
What does the competition between XRP and Chainlink (LINK) signify?
On social media, a wave of controversy between the XRP and LINK investment communities is intense, with criticisms regarding the collaborative position of the networks and the significant rise of LINK.
Key representatives of Chainlink confirm that Swift is collaborating with this network instead of XRP, creating a competitive advantage for LINK and attracting new capital.
"Swift has actually chosen to collaborate with the Chainlink network instead of XRP."
– ChainLinkGod, an expert in the Chainlink ecosystem, stated on X on August 24, 2024.
LINK has grown by 75% in just three weeks, outperforming XRP in Q3. However, long-term statistics show that XRP maintained its leading position for nearly two consecutive years prior (TradingView, 2024).
Can XRP recover strongly if a spot ETF is approved in the United States?
The growth of Futures on CME is being viewed by experts as a "vote of confidence," reinforcing belief that the XRP spot ETF in the United States will yield positive results.
If a spot ETF is indeed approved, combined with the coin-holding moves from sharks, XRP's recovery outlook will significantly increase, creating a new growth cycle for the entire market.
Observing price action and the movement of institutional capital in the upcoming sessions will be an important indicator, determining the speed and scale of XRP's recovery compared to its peers in the segment (CoinDesk, 2024).
Frequently Asked Questions
What is CME XRP Futures?
CME XRP Futures is a futures contract product of XRP traded on the Chicago Mercantile Exchange, primarily serving institutional investors.
What does an Open Interest level of nearly 12 million XRP on CME signify?
This is the highest level recorded on CME, reflecting strong confidence and increasing participation from institutions in XRP.
Is the $2.8 price area still a strong support for XRP?
The $2.8 level was once an important support; if institutional cash flow holds, this price area could still be protected.
How does LINK outperform XRP in Q3?
LINK surged 75% in just three weeks, while XRP dropped 23%, indicating a rotation of capital and LINK's temporary advantage.
Will the sharks stopping selling boost XRP's recovery?
The temporary reduction in shark selling presents a positive signal, increasing the likelihood of a reversal supported by substantial capital flow from institutions.
Source: https://tintucbitcoin.com/hop-dong-xrp-cme-dat-9-ty-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
