XRP Price Surges Amid Increased Open Interest and Ripple’s Stablecoin Developments
XRP, the native token of the Ripple network, has seen a significant price increase of 5% in the past 24 hours, trading at $0.646 as of Sep
XRP, the native token of the Ripple network, has seen a significant price increase of 5% in the past 24 hours, trading at $0.646 as of September 30, 2024. This surge is part of a broader recovery trend that began on September 6, with the token gaining over 14% in the last 30 days.
Price Performance and Market Position
Data from Cointelegraph Markets Pro and TradingView shows that XRP has climbed from a low of $0.5027 on September 6 to an intraday high of $0.6335 on September 29, marking a 26% increase. This impressive performance has positioned XRP as the third-highest gainer among the top-100 cryptocurrencies by market value over the last 24 hours.
Bullish Predictions and Technical Analysis
Crypto analysts are increasingly optimistic about XRP’s future price movements. Raajeev Anand, a crypto YouTuber, predicted potential targets of $2, $4.2, or even $9.98, citing bullish patterns observed in XRP’s chart. Technical indicators supporting this bullish outlook include:
- A breakout from a symmetrical triangle persisting since 2020 on the weekly timeframe
- A golden cross formation
- The Relative Strength Indicator (RSI) sending a rare bullish signal on the monthly chart
Open Interest and Funding Rates
XRP’s price surge coincides with a significant jump in its open interest (OI). The OI has risen approximately 67% since September 7, reaching $932.3 million on September 29 – a level not seen since April 12, 2024. This increase in OI, coupled with rising prices, often indicates a continuing trend.
Additionally, data from CoinGlass reveals increasing demand for leveraged long positions in XRP, as evidenced by the rising perpetual futures funding rate. The current 0.0113% eight-hour rate translates to a 0.23% cost over a seven-day period, suggesting bullish sentiment among futures traders.
Ripple’s Stablecoin Development
Amidst the price action, Ripple, the company behind XRP, has been ramping up its stablecoin development. In the past 24 hours, Ripple minted approximately 800,000 RLUSD tokens on both Ethereum and XRP Ledger networks. This significant minting activity, accounting for 99% of the total RLUSD supply, has led analysts to speculate that Ripple’s planned stablecoin project may launch soon.
Ripple first announced its stablecoin development in April, positioning it as a tool for instant cross-border money transfers and payment services. The project entered its testing phase in August 2024, with Ripple urging caution against potential scams during this period.
Regulatory Landscape
Despite ongoing legal challenges with the SEC, including a recent court ruling that imposed a $125 million fine on Ripple and certain restrictions on securities offerings, the company appears determined to proceed with the launch of RLUSD. Ripple anticipates regulatory approval from the SEC for its stablecoin project.
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