XRP ($2.52)’s open interest has climbed above $3 billion, signaling a sharp shift in market sentiment. After months of muted activity, traders are re-entering with larger positions. Open interest measures the total value of active futures and options contracts. A rise in this metric indicates that more participants are entering, often with leverage, which increases potential volatility.

Currently, XRP trades at $3.11, holding between $3.04 and $3.14. Technical charts show the asset nearing a decisive point. A breakout above $3.40 could fuel a rally toward the $3.65 all-time high. However, dropping below $3.00 may trigger a move toward lower support.

Futures Market Mirrors the Surge

Futures data supports this trend. XRP futures open interest has jumped on several exchanges, with some reporting figures as high as $8.68 billion. The weighted funding rate has also increased, showing traders are paying more to keep long positions, a sign of growing bullish bets. Analysts warn that such a setup often precedes sharp price swings.

Ripple CEO Brad Garlinghouse says, “XRP ETFs mark the shift from speculative retail trading to institutional adoption.” He highlights that ETFs not only expand access but also redefine asset ownership. Like Bitcoin ETFs, an XRP ETF would offer regulated custody, ticker access for institutions, and a path for long-term capital inflow.

Related article: What Is XRP’s Fair Market Value? Analyst Models vs. Real Price Action

Prominent asset managers, including Bitwise, Grayscale, and 21Shares, have filed for XRP products. U.S. regulators have acknowledged these proposals, a crucial step toward approval.

Legal Clarity Fuels Optimism

The end of Ripple’s legal battle with the SEC in 2025 removed a major hurdle. With regulatory uncertainty fading, institutional interest is accelerating. Garlinghouse notes that ETFs could recast XRP as a portfolio asset alongside stocks and bonds, not just a crypto trading token.

If approvals arrive, inflows could shift from retail-driven hype to strategic institutional allocations. Rising open interest above $3 billion, paired with legal clarity, sets the stage for heightened volatility and potentially significant price action.

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