XRP sees its strongest upward momentum since January 2018, with futures open interest soaring to a new record.

XRP Hits New Heights as Market Momentum Builds on Bullish Sentiment and Record Derivatives Activity

XRP has marked a major milestone, reaching a seven-year high and experiencing significant momentum as the cryptocurrency market enters a strong bullish phase. Following a 50% increase in January alone, XRP has surged past $3, continuing its upward trajectory from the previous quarter’s impressive 240% gain.

This price surge has brought XRP’s market cap to $176.75 billion, overtaking Tether (USDT) and solidifying its place as the third-largest cryptocurrency by market value, behind only Bitcoin and Ethereum. With a 30% jump in the past week, XRP has been outperforming other altcoins, gaining the attention of both retail and institutional investors.

According to the relative strength index (RSI), XRP is experiencing its strongest bullish run in over seven years, with the 12-month RSI climbing to 92. While RSI readings above 70 are often considered a sign of overbought conditions, experts suggest that this level could persist as the market remains driven by continued buying pressure.

One of the most notable developments is the massive growth in XRP’s derivatives market. Trading volumes have surged, with spot market activity reaching a record $23 billion in just the past 24 hours. Derivative volumes have also increased significantly, surpassing $34 billion, showing that traders are betting heavily on XRP’s sustained growth.

The open interest in XRP perpetual futures has reached an all-time high of 2.34 billion XRP, with funding rates at a healthy 13%. This shows that the market is less leveraged compared to earlier this month, when extreme bullish sentiment pushed funding rates to over 100%, signaling excessive leverage.

In addition to strong market sentiment, Ripple’s recent strategic moves, including growing partnerships and the introduction of its RLUSD stablecoin, have provided added fuel for the XRP rally. Speculation about the approval of a spot XRP ETF has further fueled optimism, with some experts expecting it to become a game-changer for the token’s future.

As Bitcoin continues to lead the market with its price surpassing $100,000, XRP’s price movement is supported by the broader crypto market’s risk-on behavior, showing no signs of slowing down. With strong fundamentals and increased institutional interest, XRP’s future looks increasingly bright.