XRP (XRP) price gains 25% as open interest surges 32%

Despite rising futures interest, the data suggests XRP's price remains caught in a tug-of-war between bullish spot market activity and bearish perpetual futures.

Key Takeaways:

XRP has surged 25% since April 7 as the broader crypto market recovers and XRP open interest soars.

The altcoin’s open interest shot up 32% from $3.14 billion to $4.13 billion over the past three days.

Despite the futures OI increasing alongside the price, data from the Velo suggests a tug-of-war between traders.

XRP price today fell to a year-to-date low of $1.61 on April 7, but the coin has recovered around 25% over the past two weeks as the broader crypto market continues to climb.

The altcoin’s open interest also surged 32% from $3.14 billion to $3.14 billion between Friday, April 21, and Sunday, April 23, according to Glassnode. This signals the return of derivatives traders, who were largely absent during the market downturn earlier this year.

Futures OI increasing alongside the price indicates a bullish sentiment, and the aggregated premium on open interest suggests that the XRP futures market is continuing to bid against an XRP price rise.

Data from the derivatives analytics platform Velo indicates that the futures funding remained at 0, implying a neutral stance between the bulls and bears.

Aggregating the spot price data from major exchanges, the cumulative volume delta turned positive in April. This indicator, which measures the net difference between aggressive buy and sell trades, becomes green and rises above zero when there is more buying pressure as market buy trades exceed sell trades.

This aligns with the positive spot market activity in the past few weeks.

However, despite the risi ng futures interest, the data suggests that XRP’s price remains caught in a tug-of-war between bullish activity in the spot market and bearish activity in the perpetual futures market.