XRP Futures Show Bullish Momentum

Futures tied to XRP are showing positive signals as the payments-focused cryptocurrency seeks bullish momentum.

On Monday, cumulative open interest in XRP perpetual futures on major exchanges briefly increased to 800 million XRP, the highest since January 19, according to Velo. This platform tracks activity in USDT and USD perpetuals listed on Binance, Bybit, OKX, and Hyperliquid.

Currently, cumulative open interest stands at 743 million XRP, which is 33% higher than on June 22, when XRP hit an interim price bottom at $1.90.

Open interest refers to the number of futures contracts that are open or active at a certain time. An increase signals more money entering the market, but it doesn’t indicate the nature of those flows.

The recent rise in open interest appears driven by traders pursuing bullish long bets, as perpetual funding rates have maintained a positive trend, sometimes exceeding an annualized 10%, indicating demand for bullish exposure.

Exchanges generally collect funding rates every eight hours, involving longs paying shorts when demand for bullish bets causes perpetuals to trade at a premium to the spot price.

The bullish sentiment is also reflected in the top trader long/short ratio within the Binance-listed XRP/USDT market. As of now, the ratio tracked by Coinglass is 1.90, suggesting there are two long positions for every short position. Shorts gain when the cryptocurrency’s price decreases.

Last week, traders in the Deribit-listed options market pursued higher-strike XRP calls.

However, the spot price of the cryptocurrency has not yet experienced significant bullish volatility. On Monday, prices peaked at $2.35, a level last seen in late May, before quickly dropping back to $2.25, where it remains stable.