A popular cryptocurrency is on fire... Will the price explode soon?

$XRP Market watchers believe that the sharp increase in open interest for XRP contracts reflects rising speculative activity and hints at the possibility of a price breakout in the near term, as the currency is trading around the $2.20 level on Tuesday morning.

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

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

Open interest is the number of open, unliquidated, 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.