Ripple

XRP Price Will Bloom Again, New All-Time Highs Soon!

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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.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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