Analyst cautions on leverage-driven XRP pump
Analysts have warned that the recent surge in XRP's (CRYPTO:XRP) price could be the result of a "leverage-driven" pump, with the token reaching levels not seen since 2021.
On December 1, CryptoQuant analyst Maarten Regterschot highlighted that the open interest in XRP—representing open derivatives positions—had seen a significant spike in the past 24 hours.
This sharp increase in open interest raised concerns that it could lead to a rapid sell-off.
“Open Interest is up 37% already—watch for volatility. The last similar event led to a -17% drawdown,” said Regterschot, urging investors to manage risk carefully.
According to CoinGlass data, XRP’s open interest surged by 30% in just one day, reaching a total of $4 billion across major exchanges.
The token's rally began alongside other major cryptocurrencies, including Bitcoin and Solana, following Donald Trump’s election victory on November 6.
However, XRP has recently outperformed other leading tokens.
On December 1, XRP overtook Solana by market capitalization and briefly surpassed Tether, becoming the third-largest cryptocurrency by total market value.
The surge in XRP’s price comes amid increased partnerships, new product developments from Ripple Labs, and speculation surrounding an XRP ETF. Additionally, rumors that Elon Musk may invest in XRP and Ripple have fueled investor interest.
On November 1, 2024, 21Shares filed for an XRP ETF, raising hopes among investors that the SEC, under new leadership in 2025, may approve the application.
At the time of reporting, the XRP price was $2.41.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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