Open interest in XRP approaches $5 billion. Meanwhile, the cryptocurrency's price continues to consolidate

In recent days, the cryptocurrency market has witnessed a significant increase in open interest for XRP, approaching the $5 billion mark. Meanwhile, the token's price continues to consolidate around $2.3, raising questions about potential scenarios for further movement.

Increase in open interest: a signal for volatility?

Open interest is an indicator of the number of active contracts in the futures market. Its growth may indicate increased trader activity and expectations of significant price movements. Bitget Research's chief analyst Ryan Lee notes that such a high level of open interest may signal the market's preparation for a sharp impulse.

Possible development scenarios

Experts believe that the narrow range of XRP consolidation could be a precursor to breakthrough movements. If buyers continue to exert pressure on the price, a bullish impulse leading to growth is possible. However, without a clear trigger, such high open interest could increase volatility both upward and downward.

External factors and prospects