The price of XRP has climbed from a low of $2.385 to $2.83 in the last seven days. This rebound move of XRP was partly triggered by the acknowledgment of its exchange-traded fund (ETF) filing. Notably, during the week, the U.S. Securities and Exchange Commission (SEC) had signaled receipt of the Grayscale XRP ETF filing.
Open interest spikes amid ETF news, but is it sustainable?
This development influenced the open interest (OI) surge among XRP holders. OI is the number of traders’ open futures or options contracts in XRP and dollar terms.
According to CoinGlass data, XRP’s open interest hit 1.57 billion, valued at $4.40 billion, a 3.34% increase in the last 24 hours.
This increase in OI alongside price suggests new buying interest in the XRP community and might signal bullish sentiment among traders. That is, market participants are optimistic of a likely upward price movement for XRP.
However, analysts advise caution on investors’ part as XRP’s trading volume has not risen with the increased open interest and price surge.
A second XRP ETF acknowledgment from the SEC helped sustain the ongoing positive signals. Notably, 21Shares’ filing gained the regulatory authority’s acknowledgment about 24 hours ago.
This increases the number of asset managers that have applied to launch spot XRP ETF products. The others include Grayscale, Bitwise, Canary Capital, CoinShares and WisdomTree.
Can XRP price break $3?
As the XRP ETF continues to excite market participants, traders have committed to the futures market with different exchanges. Notably, Bitget leads with a total of 439.58 million XRP valued at about $1.24 billion.
Gate.io, Bybit and Binance follow with 320.62 million XRP, 310.25 million XRP and 297.63 million XRP, respectively. The monetary worth of each open interest for these exchanges was $900.57 million, $871.52 million and $836.59 million in that order.
As of this writing, XRP price was changing hands at $2.81, representing a 2.32% increase in the last 24 hours. Market observers are watching keenly if the bullish news surrounding XRP can nudge the price closer to $3 in the long term.
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