Veteran analyst warns of leverage driven XRP pump as token flips Tether

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Veteran analyst warns of leverage driven XRP pump as token flips Tether

crypto :: 2024-12-02 :: source - cointelegraph

By Tom Mitchelhill

Analysts warn Ripple’s native XRP token may be experiencing a “leverage-driven” pump as the price of the asset soars to reach levels not seen since 2021.

In a Dec. 1 post on X, CryptoQuant analyst Maarten Regterschot said that open interest in XRP XRP $2.42 had spiked massively in the last 24 hours and warned that sharp upticks could result in quick sell-offs. Open interest is a measure of open derivatives positions.

“Open Interest is up 37% already — watch for volatility. The last similar event led to a -17% drawdown,” said Maartuun.

“Stay sharp, manage risk accordingly.”

According to data from CoinGlass, open interest in XRP has skyrocketed 30% in the last 24 hours to reach a total of $4 billion across major exchanges and trading platforms.

At the time of publication, XRP was changing hands for $2.39, up a staggering 68% in the last month, per TradingView data. It is up nearly 370% in the last year.

*XRP has gained nearly 70% in the last week. Source: TradingView*

XRP began rallying alongside major crypto assets, including Bitcoin BTC $95,645 and Solana SOL $225.58 , following Donald Trump’s US presidential election victory on Nov. 5, but XRP has begun to outperform other major tokens.

On Dec. 1, XRP flipped by Solana by market capitalization and has since surged past Tether USDT $1.00 as well, making it now the third-largest crypto asset by total value.

XRP’s outsized price performance comes amid a growing number of key partnerships, new product developments from Ripple Labs, the possibility of an XRP ETF, and unsubstantiated rumors that Elon Musk would make a sizable investment into XRP and Ripple.

Asset manager 21Shares filed for an XRP ETF on Nov. 1, 2024, raising investor expectations that the Securities and Exchange Commission (SEC) — which likely will be under new leadership from January 2025 — will approve the ETF applications.

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