Here is the rewritten content:
XRP’s Price Surges 50% to Seven-Year High, Derivatives See Record Activity
Market Analysis
Payments-focussed cryptocurrency XRP is currently experiencing its fastest ascent in years, with derivatives tied to the token witnessing record activity. The cryptocurrency’s price has surged 50% to reach seven-year highs above $3, extending its gains from the past quarter’s 240%. Prices have gained 30% in the past seven days alone, lifting the market capitalization to $176.75 billion, the third-highest ahead of stablecoin tether.
Technical Analysis
XRP’s weekly chart with the relative strength index (RSI) shows a significant uptrend, with the 14-month RSI reaching a high of 92, the highest level since October 2017. This indicates that the momentum observed over the past 12 months is the strongest in seven years. Rookie traders may point out that RSI readings above 70 indicate overbought conditions and potential for a bull breather or correction. However, this is not necessarily the case, as RSI merely measures the speed of price changes over a specific period.
Market Sentiment
Crypto continues its recovery from Monday’s drop, with BTC pushing towards the $100,000 mark. The broader market is rebounding, with altcoins like XRP and XLM standing out. XRP has reclaimed the third spot among cryptocurrencies and surpassed BlackRock’s market cap.
"This surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF," said Diego Cardenas, OTC trader at digital asset platform Abra.
Trading Volumes
Take trading volumes, for example. The spot market tally has tripled to over $23 billion in the past 24 hours, validating the price surge. Meanwhile, volumes in derivatives have more than doubled to $34 billion, according to data source CoinGecko and Coinglass.
XRP’s Perpetual Futures Open Interest
XRP’s perpetual futures open interest has surged to a record high of 2.34 billion XRP, with funding rates representing the cost of holding leveraged bets hovering around 13%. This is well below the 100% seen in early December, which signaled excess bullish leverage. In other words, the XRP market is much healthier and supports continued price gains.
Conclusion
XRP’s price surge is a significant development in the cryptocurrency market, with derivatives seeing record activity. The token’s market capitalization has risen to $176.75 billion, the third-highest ahead of stablecoin tether. With trading volumes surging and funding rates stable, the XRP market is poised for continued growth.
FAQs
Q: What is driving the surge in XRP’s price?
A: The surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF.
Q: What is the current market capitalization of XRP?
A: The current market capitalization of XRP is $176.75 billion, the third-highest ahead of stablecoin tether.
Q: What is the current open interest in XRP’s perpetual futures?
A: The current open interest in XRP’s perpetual futures is a record high of 2.34 billion XRP.
Q: What is the funding rate in XRP’s perpetual futures?
A: The funding rate in XRP’s perpetual futures is around 13%, which is well below the 100% seen in early December.
Q: How is the XRP market currently performing?
A: The XRP market is currently performing well, with trading volumes surging and funding rates stable, indicating a healthy market.
