The analyst warns about a ‘leverage driven’ XRP pump when flipping Tether
Analysts warn that Ripple's native XRP (XRP) token may be facing a “consumption-driven” pump as the asset price hits levels not seen since 2021.
In a Dec. 1 post for X, CryptoQuant analyst Maarten Reterschot noted that open interest in XRP — a measure of open derivatives positions — has increased significantly over the past 24 hours and warned that a sharp increase could prompt a quick selloff.
“Open interest has already increased by 37% – look at volatility. The last similar event resulted in a -17% decrease,” Martin said.
“Stay well, manage risk accordingly.”
Source: Marten Reutersshot
According to data from CoinGlass, open interest in XRP has risen by 30% in the past 24 hours, reaching a total of $4 billion across major exchanges and trading platforms.
At the time of publication, XRP is changing hands at $2.39, up an impressive 68% over the past month, according to TradingView data. It's up about 370% in the past month.
XRP has gained almost 70% in the past week. Source: TradingView
XRP began rallying with major crypto assets including Bitcoin (BTC) and Solana (SOL) following Donald Trump's election victory on November 6, but XRP has since outperformed other major tokens.
Related: XRP price chases $2 after bull flag collapse to new 2024 high
On December 1, XRP overturned Solana in market capitalization and rose alongside Tether (USDT), making it now the third largest crypto asset by total value.
XRP's price performance is fueled by a growing number of key partnerships, new product developments from Ripple Labs, the possibility of an XRP ETF, and unsubstantiated rumors that Elon Musk will invest heavily in XRP and Ripple.
Asset manager 21Shares for XRP ETF Nov 1, 2024 – Raising investor expectations The Securities and Exchange Commission (SEC) – likely under new leadership in January 2025 – will approve ETF applications.
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