Ripple’s XRP has risen by almost 10% over the past week. The rally is supported by improved sentiment across digital assets, but key developments also fostered bullish momentum.
Using this, institutional demand for XRP has skyrocketed. This reinforces bullish sentiment among token holders, indicating the possibility of further benefits in the short term.
XRP legitimate victory will cause a rush of facilities
On August 7th, filing via the Second Circuit Court of Appeals granted the joint dismissal of the US SEC appeal and Ripple’s mutual appeal in a long-term lawsuit over XRP. This filing concludes one of the most closely monitored enforcement battles in cryptocurrency history.
As XRP retail demand steadily rises following this development, institutional appetites have also increased. This is reflected in an increase in open interest in XRP futures contracts regarding the Chicago Mercantile Exchange (CME).
According to GlassNode, this closed on August 12th at an annual high of 287,200 XRP, indicating an increase in participation from large market players.
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CME’s XRP futures market is dominated by institutional players seeking regulated exposure to tokens. Thus, the growing open interest suggests that these investors are actively increasing their positions. This could increase purchasing pressure and increase XRP’s upward momentum in the short term.
Additionally, XRP has consistently recorded a positive funding rate since June 28th, indicating that traders continue to pay premiums to maintain their long positions. At the time of writing, the metric is 0.0119% per Coinglass data.
Funding rates are periodic payments between traders in permanent futures contracts to maintain prices consistent with the spot market. If the value is this positive, the owner of the long position is paying for the shorts, indicating that most traders are betting on further price increases.
One break above $3.33 can fire XRP towards $3.66
XRP trades at $3.22 at press, up 3% over the past day. If demand is strengthened, XRP could extend the price increase to $3.33. A successful violation of this barrier could pave the way for a near $3.66 travel.
However, sellers could cause a drop in XRP price to $2.99 if they regain control.
Post XRP futures will hit 2025 on CME.
