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The post <a href="https://cryptosnewss.com/xrp-price-soars-to-1-20-amid-record-futures-open-interest/" rel="noopener noreferrer nofollow">XRP Price Soars to $1.20 Amid Record Futures Open Interest</a> appeared first on<a href="https://cryptosnewss.com/" rel="noopener noreferrer nofollow"> Cryptos Newss</a>.XRP, stewarded by digital assets payments and infrastructure firm Ripple Labs, is trading at heights not seen in three years as the broader crypto market benefits from anticipated upcoming political tailwinds in the U.S.While the asset has shed 16% of its value from a Saturday peak of $1.20, it&#39;s still up more than 80% on the week to $1.06, data from CoinGecko shows.The coin has been on a clear upward trajectory since President-elect Donald Trump secured victory in the U.S. presidential election earlier this month.That has buoyed investor interest in multiple cryptos, including meme coins, which continue to lead the market rally in terms of total performance alongside relative gains for large-cap coins.No more apparent is that evidenced than in the futures market for the world’s sixth-largest crypto, with open interest having spiked to record heights just below $2 billion, CoinGlass <a href="https://www.coinglass.com/currencies/XRP" rel="noopener noreferrer nofollow">data</a> shows.CoinDesk first reported the news.Open Interest represents the total number of active futures or options contracts that remain open and have not yet been settled or closed.Read Also: <a href="https://cryptosnewss.com/ripples-rlusd-stablecoin-ready-but-awaiting-regulatory-approval/" rel="noopener noreferrer nofollow">Ripple’s RLUSD Stablecoin: Ready but Awaiting Regulatory Approval</a>High OI often reflects a surge in speculative trading as traders place bets on future price movements. This can lead to greater volatility as leveraged positions amplify reactions to market news or events.&#34;The recent spike in XRP futures open interest to record levels signifies a rise in trader interest, often an indicator of market bullishness,&#34; Nick Forster, founder of onchain options DeFi protocol, Derive, told Decrypt.Coupled with consistently high and positive funding rates, it suggests that new market participants might be capitalizing on the &#34;basis of trade opportunities in XRP,&#34; the founder added.Basis trading refers to a strategy that seeks to profit from the difference between the spot price of an asset and its price in the futures or derivatives market.&#34;The activity highlights XRP&#39;s increasing allure and its dynamic position within the trading community, suggesting speculative optimism as traders position to leverage anticipated price movements,&#34; Forster said.It comes amid speculation this month Securities and Exchange Commission Chair Gary Gensler may step down shortly following Trump’s inauguration on January 20.Gensler, according to many within the industry, has persisted in what they’ve termed as a “crusade” against digital assets firms, including Ripple.Initiated in December 2020, the SEC’s lawsuit against Ripple Labs alleged the company and its founders sold XRP to investors deemed as securities. In July 2023, a federal judge ruled that XRP is not a security when sold to retail investors, but institutional sales violated securities laws, leading to a $125 million penalty for Ripple.The SEC has appealed this decision, and the court has set a January 2025 deadline for the SEC&#39;s final briefings.With his potential departure, Ripple, and by extension, XRP, may have a clearer runway to regain market confidence and expand its use case without the overhang of regulatory uncertainty, depending on the outcome of the case.With the upcoming shift in U.S. political leadership, XRP traders are hopeful that the SEC might ease its stance in court regarding XRP&#39;s classification as a security.Trump has stated his intent to “fire Gary Gensler on day one.” While Trump cannot directly dismiss Gensler, analysts Decrypt previously spoke to speculate that Gensler may voluntarily step down within the next six months.That could also bolster prospects for a U.S.-listed spot exchange-traded fund for the asset, analysts have previously told Decrypt.As evidenced by the recent price bump, XRP investors are banking on those developments, Pratik Kala, portfolio manager and head of research at digital asset fund manager Apollo Crypto, told Decrypt.&#34;XRP is rising due to rumors that Ripple CEO Brad Garlinghouse will be advising Trump on crypto policy,&#34; Kala said.This has boosted trader sentiment, and with Bitwise having previously filed for an XRP ETF, some are connecting these developments in hopes of capturing potential upside, he added.The post <a href="https://cryptosnewss.com/xrp-price-soars-to-1-20-amid-record-futures-open-interest/" rel="noopener noreferrer nofollow">XRP Price Soars to $1.20 Amid Record Futures Open Interest</a> appeared first on <a href="https://cryptosnewss.com/" rel="noopener noreferrer nofollow">Cryptos Newss</a>.

XRP Price Soars to $1.20 Amid Record Futures Open Interest

Cryptos Newss

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