XRP Almost Sets New All-Time As Futures Open Interest Jumps To Record High Despite SEC Appeal Saga
XRP, the crypto asset stewarded by blockchain payments firm Ripple, is chalking out its fastest ascent in seven years. XRPs upsurge comes on the back of soaring open interest in derivatives markets amid the SECs latest filing to appeal a court ruling in its partially unsuccessful lawsuit against Ripple.
Rising XRP Open Interest
XRPs price has been on a roll, climbing over 12.4% in the past day, 42.4% on the weekly chart, and an eye-popping 458% over the last quarter. The gains have helped XRP become the third-largest crypto by market cap after surpassing stablecoin issuer Tether.
According to CoinGecko data, the payments-focused cryptocurrency today rose to as high as $3.38 its highest level in seven years. XRP now has a 5.1% climb to match its all-time high mark of $3.84, registered back in January 2018.
XRPs upward trajectory is evidenced in the futures market for the worlds third-largest crypto, with open interest having spiked to record heights of $8.2 billion, CoinGlass data shows.
Open Interest represents the total number of active futures or options contracts that are open and have not yet been settled or closed. High OI often reflects heightened trader activity and anticipation of significant future price actions.
Bullish Sentiment Prevails
XRPs historic rally came even after the U.S. Securities and Exchange Commission submitted an appeal on Jan. 15, challenging a July 2023 ruling by District Judge Analisa Torres, which determined that XRP sales to retail investors did not break federal securities laws. In its brief to the U.S. Court of Appeals for the Second Circuit, the SEC asked the court to vacate the district courts judgment. In other words, the agency wants retail XRP sales to be classified as securities.
Despite the SECs highly controversial appeal, investors are still inspired by Ripples previous favorable outcomes in the long-standing case with the regulator.
Investor optimism is also increasing ahead of US President-elect Donald Trumps swearing-in on Jan. 20, which is expected to usher in more regulatory clarity for the fast-growing crypto sector.
The change in SEC leadership could further represent a crucial turning point in the SECs enforcement approach. Current SEC boss Gary Gensler is set to resign in the coming days. Trump has already appointed crypto-friendly former SEC commissioner Paul Atkins to take the helm.
If the prevailing regulatory uncertainties are resolved, XRP could win approval for U.S.-listed spot exchange-traded funds (ETFs), further solidifying its position in the cryptosphere.
Text source: ZyCrypto
