Key Insights
- XRP surged 5.72% in 24 hours to reclaim market momentum after a week of steady decline and prolonged price consolidation.
- CoinGlass data shows open interest dropped 5.26% to $3.50 billion, reflecting reduced speculative participation despite the rally.
- The rebound marks XRP’s first major upward move since the October 10 crash, signaling cautious optimism among market participants.
XRP has rebounded sharply after spending over a week in steady decline. On Saturday, October 18, the cryptocurrency gained 5.72% in value within 24 hours, signaling renewed buying interest. The move followed several days of consolidation, during which XRP repeatedly tested the $1 threshold.
Despite the upward price momentum, data from CoinGlass showed a 5.26% decline in open interest volume, now valued at around $3.50 billion. Open interest represents the total value of active futures and perpetual contracts, a key indicator of market participation. The drop suggests that speculative traders remain cautious even as prices rise, reflecting subdued conviction behind the rally.
Market Sentiment Slowly Shifting
The increase in XRP’s price marks the first notable upward movement since the major market downturn on October 10. During the previous week, the consistent decline in price had weakened investor confidence. However, the latest rebound has revived some optimism, particularly among retail participants watching for signs of sustained recovery.
Although spot prices are rising, derivative traders have not mirrored the same enthusiasm. The fall in open interest implies fewer active futures positions, which could indicate that investors are preferring to hold existing assets rather than leverage speculative bets. Moreover, it points to reduced short-term risk-taking, even as broader sentiment begins to stabilize.
XRP’s Renewed Interest Among Investors
The renewed price activity has drawn attention from both retail and institutional investors looking for indications of market recovery. Approximately 1.49 billion XRP, valued at $3.50 billion, remains active in futures trading. This shows that while market confidence is gradually improving, participation levels have yet to return to their previous highs.
The current market behavior highlights a cautious return of optimism following the earlier crash. Although the price recovery is notable, the decrease in open interest underscores a measured response from traders. Consequently, XRP’s ongoing trajectory will likely depend on whether increased spot trading can translate into renewed participation in the derivatives market.
