A recent analysis suggests that increasing leveraged appetite among XRP traders has been a major catalyst to XRP’s recent price rally.
XRP has recorded three consecutive daily price appreciations after the Monday reality check. For context, the asset recorded its largest daily price correction since the Terra crash in 2022 on Monday, following a 34% surge the previous day.
Meanwhile, XRP has recovered since then, rallying 9% in the past three days. Recent analysis from CryptoQuant has suggested that growing derivative interest in the XRP Ledger native token has fueled this comeback.
Leverage-Driven XRP Pump
In a tweet, the market analytics provider shared that open interest (IO)—a metric measuring the value of derivative contracts that are unsettled on an underlying asset at a given time—has surged considerably in the past day.
Specifically, CryptoQuant mentioned that IO on XRP rallied 5.63% on Thursday, indicating growing leveraged activities on the asset. With the surge coinciding with a price uptick, the analysis suggested that derivative traders were responsible for XRP’s recent northward push.
Notably, data from Coinglass confirms this open interest shift as margin-focused positions increased from $3.29 billion the previous day to $3.36 billion on Thursday. Moreover, this appetite has continued to accelerate, with XRP’s IO growing further to $3.53 billion today.
Furthermore, derivatives and options volume has surged alongside the open interest as traders increasingly pile on to profit from short-term XRP price shifts. Derivatives volume has increased by 63% and options volume by 81% in the past 24 hours.
XRP Derivative Data
Analyst Shares XRP Short Opportunity
Maarten Regterschot, a verified CryptoQuant analyst, has shared his thoughts on the leveraged-driven XRP price pump. He suggested that the pump may present a good XRP shorting opportunity for market traders.
The analyst insinuated that as long/short positions indicate higher bets on more upsides for XRP, a drift in momentum could push prices lower. However, he urged caution, stating that XRP’s price actions “can be wild.”
In the meantime, XRP continues to regain momentum after an earlier flush today. The asset and other cryptocurrencies went south after Donald Trump’s executive order failed to meet the expected hype.
XRP trades at $2.533 at press time, up 3% in the past 8 hours.
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