XRP recorded an amount of $4.56 billion in open interest amid the broader cryptocurrency market crash. Although XRP lost more than 12% of its price value in the crash, investors betting on the futures derivatives market for the coin have committed over $4.5 billion to it, according to CoinGlass data.
CME leads in commitment to XRP futures contracts despite the crash
It is noteworthy that the 1.82 billion XRP committed, equivalent to $4,560,000,000, does not reflect a bullish setup as it is 45.84% deep in the red zone. This means that the current billion invested in XRP is a bear trap, as the currency is performing poorly like all other cryptocurrencies in the market.
To clarify, open interest refers to the total volume of outstanding derivative contracts, whether futures or options, that have not been settled. Despite the large volume, it indicates that those investors betting on a rapid recovery may face losses if the price does not rise.
As of the writing of this article, XRP was trading at $2.45, representing a decrease of 13.02% in the past 24 hours. The currency was trading below the psychological level of $3 before the broader market crash caused its price to drop from a peak of $2.83.
However, it seems that investors are unfazed by the collapse as trading volume increased by 355.35% to $21.49 billion. Market participants are treating the price collapse as an opportunity to 'buy the dip' as they anticipate a potential recovery.
Similarly, some investors have decided to bet on the futures market, most of them on the CME exchange. They have committed 453.93 million XRP worth $1.12 billion for the asset.
Including others such as Binance, Bitget, Bybit, and Gate with amounts of $748.19 million, $657.43 million, $632.70 million, and $508.63 million, respectively.
Can XRP whales delay the price recovery?
Meanwhile, technical analyses of XRP suggest that XRP may be in a downward trend but is not dead. Trends in market forecasts for the asset indicate that selling pressure is easing, and bulls in the ecosystem may regain control at any moment. If that happens, the currency may resume its journey toward the critical $3 level.
However, it is noteworthy that major holders may play a crucial role in the recovery journey of XRP. In the past thirty days, XRP whales have sold about $50 million worth of the asset on average daily. If this trend continues, it may impact the market's efforts to recover.
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