XRP Skyrockets: A New Era of Price Discovery Begins
XRP, Markets, Price Analysis, Market Analysis
XRP 1-month chart. Source: Cointelegraph/TradingView
For the first time since 2017, XRP has officially entered a fresh price discovery phase. This milestone, marked by three consecutive months of green candles, has only occurred once before— but this time, it carries even greater significance. While some exchanges have already shown new all-time highs, a confirmed breakthrough past $3.40 could cement a definitive new peak.
So, what’s fueling this XRP surge? Let’s break it down.
Open Interest in XRP Explodes by $6 Billion in Just Two Weeks
In an unprecedented turn, XRP’s open interest (OI) has surged to a record-breaking $7.9 billion, a staggering 300% increase since the start of 2025. Even more impressively, the past 24 hours alone saw an OI jump of 27.34%, while futures trading volume doubled to $42.87 billion, per CoinGlass data.
XRP, Markets, Price Analysis, Market Analysis
XRP futures open interest. Source: CoinGlass
Now, conventional wisdom might suggest that such a meteoric rise in futures interest must be driving XRP’s rally. But, according to on-chain analyst Dom, that’s not the case at all.
The Real Driving Force: Spot Market Frenzy
Dom’s analysis suggests that XRP’s breakout is powered by the spot market rather than derivatives. He highlights how perpetual futures traders have systematically shorted every pullback rather than fueling the run-up.
“Perps have faded every single pump and jumped into shorts on every single pullback.”
This claim is backed by futures data. While funding rates remained stable in January—a stark contrast to their sharp spike during XRP’s November rally—the spot trading volumes have soared, making it clear that real buyers, not leveraged traders, are pushing prices up.
XRP, Markets, Price Analysis, Market Analysis
XRP aggregated funding rate and spot volumes, premium on open interest. Source: Velo
Moreover, a negative aggregated premium on open interest signals that futures traders are betting against XRP’s price surge. So far, it’s a battle between bullish spot buyers and bearish futures traders—who will emerge victorious remains to be seen.
Related: Could XRP hit $10–$50? Analysts weigh in on ETF speculation
XRP Exchange Reserves Are Climbing—Investors Taking Profits?
While excitement runs high, on-chain data suggests a rise in XRP exchange reserves, indicating that some investors may be cashing in.
According to CryptoQuant, XRP reserves on Binance have risen by 10% since mid-December, contrasting the sharp decline observed in November when the price was first breaking out.
XRP, Markets, Price Analysis, Market Analysis
XRP exchange reserve on Binance. Source: CryptoQuant
While this might hint at some profit-taking, it’s essential to note that the reserves remain below the 2024 yearly average, meaning the ongoing accumulation phase is still largely intact.
Whale Activity Surges to Six-Week High
Large holders, or “whales,” are also making waves. Blockchain analytics firm Santiment revealed that XRP whale transactions have hit their highest level in six weeks, with 2,365 transactions exceeding $100K recorded in just eight hours.
“We have just seen 2,365 $100K+ XRP transactions in the latest 8-hour span, the highest spike since December 3rd. Total holders are also skyrocketing.”
This increased activity suggests that institutional and high-net-worth investors are positioning themselves aggressively, possibly anticipating even higher prices in the near future.
Related: Bitcoin stumbles 3% as XRP reaches new highs—What’s next?
The Big Picture
XRP’s incredible surge, backed by spot market demand, rising whale activity, and record-breaking open interest, paints an exciting picture for the altcoin’s future. However, with exchange reserves increasing, some investors may be securing profits amid heightened volatility.
Still, with a potential new all-time high above $3.40 on the horizon, XRP has officially entered uncharted territory, and the next few weeks could shape the trajectory for years to come.
Will XRP continue to defy expectations, or will resistance levels prove too strong? Only time will tell— but one thing is for sure: this is one of the most thrilling moments in XRP’s history. 🚀
This article is for informational purposes only and should not be taken as financial or investment advice. The views and opinions expressed are solely those of the author and do not necessarily reflect those of Cointelegraph.
