Ripple's XRP token has seen a surge in open interest. It reached nearly $1bn over the weekend, while the price of the token hovers around $0.61.
XRP's performance stands out in the crypto market. It has risen 4.1% over the past week, contrasting sharply with struggling Bitcoin and Ethereum, down 1.5% and 2.3% respectively. In fact, at press time, XRP was the only crypto out of Top 10 to keep going up for the last 7 days.
How is XRP managing to go against the tide?
Several factors contribute to XRP's counter-trend movement. Grayscale Investments recently launched a closed-end XRP Trust in the US, allowing institutional investors exposure to the cryptocurrency. The Trust has shown strong performance. It surged by more than 11% within a week. This suggests robust institutional demand for XRP.
The launch has sparked speculation about a potential XRP exchange-traded fund (ETF). If approved, it would be only the third digital asset with its own ETF.
Ripple's ecosystem is seeing other developments: the company is preparing to launch a USD-pegged stablecoin, RLUSD, which is currently in private beta testing on both XRP and Ethereum networks.
Recent updates show active development of the stablecoin. 480,000 RLUSD was minted at RLUSD Treasury. The stablecoin could be integrated into Ripple's cross-border payment products.
Open interest in XRP hit over $1bn over the weekend. It has since fallen to around $945bn. Spot trading volume in the last 24 hours exceeds $2bn.
Rising open interest typically indicates increased market activity. It suggests more contracts are being opened. This may signal expectations of a price move in either direction.
Analysts are divided on XRP's price prospects. Some are optimistic following Ripple's legal victory over the SEC. One analyst predicts a potential surge to between $16 and $20.
Carl Runfelt, another crypto analyst, noted a multi-year bullish triangle pattern. He suggests XRP could rise by more than 200% within weeks if it breaks the pattern. However, XRP faces resistance at the $0.60 level. Failure to break through decisively could lead to a retest of the $0.55 support level.