XRP Open interest on the CME Group has reached a record high (ATH), indicating a positive outlook for the altcoin. This highlights the strong demand for XRP exposure among institutional investors, which could propel prices higher.
CME XRP Futures Open Interest Reaches New ATH
In a tweet by CME Group, it was announced that the XRP futures have seen an all-time high in open interest with over 6,000 contracts on August 18, just before their three-month anniversary. The derivatives platform emphasized that this trend reflects increasing market conviction.
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Since their launch in May, the CME XRP futures have recorded over 251,000 contracts traded, with a trading volume of $9.02 billion and $12 million in their XRP equivalent. In July, these XRP futures hit a record of $235 million traded in a single day. The sustained demand for these futures highlights significant interest in the altcoin among traditional finance (TradFi) investors.
This is promising for XRP’s price, as activity in the derivatives market typically influences price movements. Additionally, Coinglass data reveals that traders are currently placing substantial bets on XRP in the derivatives market. The altcoin’s trading volume has surged by over 142% to $16.46 billion, while open interest has risen by 8% to $8 billion.
Moreover, the record levels in CME XRP futures open interest suggest that demand for spot XRP ETFs will be substantial among TradFi investors upon their launch. Currently, the lack of a spot XRP fund necessitates that these investors utilize futures products and ETFs to engage with the altcoin. The recent amendments to the S-1 for proposed XRP ETFs have been viewed as a “very good sign” by market expert Nate Geraci.
Altcoin Anticipates Rebounds As Buyers Enter
In a tweet by analyst CasiTrades, it was noted that buyers are entering the market and the altcoin’s next target is $3.21. The analyst emphasized that bullish momentum has emerged just as XRP’s price dipped beneath its consolidation pattern, suggesting the altcoin is unlikely to revisit $2.77 before continuing its upward trajectory.
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CasiTrades pointed out that the immediate outlook suggests $3.21 as the upcoming major resistance instead of the previous $3.41 resistance target. The momentum is particularly robust, with expectations for only a brief halt at this resistance before the altcoin can climb higher. The brief pause may result in a retest near the consolidation area’s top around $3.168.
As of now, the XRP price is hovering around $3.02, marking an increase of over 5% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
