In April, the XRP price distinguished itself as one of the high-flying cryptocurrencies as positive momentum around the SEC case began to build, XRP reached an all-time high of $1.97. But the May crash has erased almost 60% of the April gains. Ripple is confronted with a number of technological difficulties, prompting a neutral outlook with a slight bearish slant.
XRP Price Analysis and the Futures Market:
The XRP craze in April helped the XRP futures market cross $2.1 billion in open interest. However, after the recent market crash, it was reduced to $550 million.
The volume of futures markets may indicate whether or not any unusual events occurred. There should be a strong link between this data and standard XRP spot markets, and futures volumes would have risen significantly to support the $2.1 billion open interest.
The movement was followed by normal spot exchange volumes, despite a major spike on April 5. Furthermore, the regular turnover of $10 billion in futures markets is more than enough to support the $2.1 billion open interest.
Analysis of futures prices premium versus standard spot markets is needed to determine whether traders may have developed an unusual open interest based on excessive optimism. The 3-month futures should typically trade at a premium of 1.2% to 2.4 percent, or 8% to 15% annualised.
Sellers of futures contracts are effectively delaying the trade, necessitating more capital to compensate. However, in highly bullish markets, the premium will rise well above 3.8%, equating to a 25% annual increase.