XRP price hit $1 after a surge in its futures open interest

XRP price gains

Following the SEC lawsuit filed against Ripple and XRP late last year, many observers would have thought that the price of the token will drop considerably and take a long time to come up. But, surprisingly, that hasn’t been the case. Rather, the token has maintained its price and even surpassed its $1 resistance level.

The regulator accused Ripple and its directors of operating an unregistered Initial public offering (IPO) when the company raised $1.3 billion.

On April 6, the SEC granted Ripple Labs access to the SEC documents that showed the regulator’s views or interpretation on cryptocurrencies.

Following the news, XRP consolidated and surged by 70% as the token crossed the $1 mark for the first time since March 2018.

Ripple’s projects impacting the price positively

The recent activities of Ripple Labs have also contributed to the positive performance of XRP’s price.

Ripple recently acquired a 40% stake in Tanglo, a fiat money transfer firm based in Asia. Barely 24 hours after the announcement, XRP surged 10%.

However, the interest of investors in XRP skyrocketed after open interest reached $1.2 billion, a new record high. The 119% rise in open positions within the past 30 days gave XRP the strength needed to retake the 3rd position it vacated for Cardano (ADA), Litecoin (LTC), and Polkadot (DOT) in recent months.

XRP’s spot volume for the past 30 days has hit $44.3 billion, which is very inspiring for the token. However, it’s only 31% of Ether’s.

The healthy derivatives market XRP is having has contributed immensely to the participation of larger players. Once an asset receives more arbitrage and hedging activity, its spot exchange volume seems to grow.

The token has kept attracting more investors despite the negative regulatory situation the company has found itself.

The post XRP price hit $1 after a surge in its futures open interest appeared first on Invezz.

Publication date: 
04/10/2021 - 15:27
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.