XRP Reaches Seven-Year Highs, Driven by Record Futures Activity and Trading Volume
XRP, the payments-focused cryptocurrency, is experiencing its fastest price ascent in years, following a 50% surge to over $3 this month. This growth builds on a 240% rally from the past quarter, according to data from CoinDesk. The surge has lifted XRP’s market capitalization to $176.75 billion, making it the third-largest cryptocurrency, surpassing Tether (USDT).
This rally marks XRP’s most significant growth since the 2018 altcoin boom, with its relative strength index (RSI) now at a remarkable 92, the highest level since October 2017. The RSI measures the speed and magnitude of price changes over a period, and a reading above 70 typically signals an overbought market. However, this doesn’t necessarily indicate an impending correction, as the RSI can stay in overbought territory longer than many anticipate.
Indicators of strong momentum are evident, as the RSI suggests that XRP’s price movement over the past year is the strongest in seven years. “Crypto continues its recovery from Monday’s drop, with Bitcoin pushing towards the $100k mark. XRP has reclaimed the third spot among cryptocurrencies and surpassed BlackRock’s market cap,” said Diego Cardenas, OTC trader at Abra, in a note to CoinDesk.
Several factors are fueling the surge, including Ripple’s stablecoin RLUSD, an increase in partnerships, and speculation around the potential approval of a spot XRP ETF. These developments, alongside the broader market’s recovery, continue to drive XRP’s bullish momentum.
One of the key factors supporting XRP’s price surge is its trading volume. Over the past 24 hours, spot market volume has tripled to over $23 billion, while derivatives volumes have more than doubled to $34 billion, according to data from Coingecko and Coinglass.
Additionally, XRP’s perpetual futures open interest has reached a record high of 2.34 billion XRP, with funding rates (the cost of holding leveraged positions) hovering around 13%—a healthy level compared to the 100% seen in early December, which signaled excessive bullish leverage. This suggests that the XRP market is now in a healthier position, reinforcing the ongoing price growth.
Meanwhile, Bitcoin has surpassed $100,000, driven by the slowdown in U.S. core inflation. Bitcoin’s strength often stimulates greater risk-taking across the broader cryptocurrency market, supporting the continued upward momentum for XRP and other altcoins.
