XRP futures trading has reached all-time highs as the price of XRP surpasses $1.20. This surge in futures trading is attributed to regulatory clarity and upcoming technical changes in the market. Open interest in XRP-tracked futures has soared to record levels, with over 2 billion tokens (equivalent to nearly $2 billion at current prices) in futures positions betting on further market volatility.
The increase in both open interest (OI) and prices indicates that new money is entering the market, signaling a bullish trend. The price of XRP surged above $1.20 in U.S. morning hours on Saturday, marking a three-year price high for the token and bringing weekly gains to over 87%.
The rally in XRP prices began late Thursday as 18 U.S. states filed lawsuits against the SEC and commissioners, including chairman Gary Gensler, for alleged unconstitutional overreach in the crypto industry. Traders are optimistic about a potential crypto-friendly Trump administration benefiting tokens linked to U.S.-based companies like Ripple Labs (associated with XRP) and Uniswap (UNI).
A key development that may further boost gains in XRP is the upcoming RLUSD stablecoin by Ripple Labs, which will be used in the company’s cross-border payments product. This stablecoin is expected to provide liquidity, facilitate faster and cheaper transactions, and potentially integrate with various decentralized finance (DeFi) protocols across multiple blockchains.
Despite a flat performance from bitcoin (BTC) and a 2.7% gain in the broader crypto market tracked by the CoinDesk 20 index (CD20) over the past 24 hours, XRP has outperformed with its price surge and record-high futures trading. Traders are closely monitoring the market dynamics and regulatory developments to gauge the future performance of XRP and other cryptocurrencies.