XRP saw a spike in open interest, with inflows of speculative investment on Binance. Despite long liquidations and market risk, traders still rebuilt long positions.
XRP trading on Binance revived after a period of relative weakness. Open interest jumped specifically on Binance, though remaining low on other markets.
Over $264M in open positions were opened on Binance, up 14.8% in the past 24 hours. XRP traded at $1.34 after the latest market downturn, showing long positions were still threatened by liquidations.
The recent market moves of XRP are mostly based on narratives. The XRPL network only carries around $46M in value locked, with minimal fees produced. Despite this, Ripple still positions itself as one of the builders of the future of crypto.
Ripple’s efforts to build a payment system are ongoing, and the company may not be affected by the new CLARITY Act. Ripple’s official stablecoin still carries $1.41B in total market cap, down from $1.58B as of March 7. The stablecoin is actively traded on Binance, adding to the popularity of XRP.
Why is XRP gaining long positions?
The recent spike in open interest shows XRP is one of the fast-reacting assets, expecting a breakout to a higher price range. XRP still has blue-chip status and a significant presence on social media, allowing the asset to survive the general loss of interest in altcoins.
The mindshare of XRP also rose by over 64% in the past day, to 1.5%, surpassing other altcoin projects. Unlike other legacy assets, XRP still sparks hopes of breaking out to a higher price range.
XRP long positions go as low as $1.25, as more cautious traders bet on the asset’s usual sideways trading. The XRP community is still showing confidence in the asset’s future, even during the current bear market.
Can XRP rise on a short squeeze?
XRP traders have been mostly cautious in shorting the asset due to its track record of sudden expansion.
This time, only around 24% of traders hold short positions, while others seek a price range for going long with a lower risk of liquidations.
One of the drivers for XRP expansion is a potential short squeeze. The latest expansion of long positions also showed a concentration of short open interest on Binance.
Based on the liquidation heatmap, an accumulation of short open interest is the strongest at $1.37. Currently, those positions, reporting $1.04B in open interest, are in the money, benefitting from the XRP slide. The position is also a potential target for liquidations, leading to an XRP recovery.
On Hyperliquid, the predictions on XRP are the opposite of those on centralized exchanges. XRP is among the most widely shorted assets, with over 63% of whales holding short positions. The biggest short position had $10M in notional value and over $378K in unrealized gains.
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Source: https://www.cryptopolitan.com/xrp-open-interest-recovers-on-binance/
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