XRP Soars 7%, But Beware of Speculative Activity

XRP has experienced a notable surge in the last day, yet data suggests an increase in speculative leverage, which could be a warning sign for investors.

Key Takeaways

XRP's price increased by 7% in the last 24 hours, reaching $2.19.
Recent launches of XRP ETFs are attracting institutional investors.
The XRP Open Interest Delta RSI has entered the overheated zone, signaling potential speculative leverage.
Historical patterns suggest caution as previous surges into this area often precede price corrections.
Recent data shows significant realized losses when XRP price falls below $2.

XRP

Despite a broader recovery in the cryptocurrency market, XRP stands out with a significant increase. With a 7% rise bringing its value to $2.19, it is gaining attention, particularly with new exchange-traded funds (ETFs) launched by Franklin Templeton and Grayscale. However, caution is advised due to rising speculative activity indicated by the Open Interest Delta RSI.

XRP’s Impressive Rally Over the Last 24 Hours

The overall cryptocurrency market is recovering from a recent downturn, but XRP has marked itself with an impressive rise. In just 24 hours, XRP jumped by 7%, returning to the $2.19 mark.

XRP Price Chart

The chart above illustrates XRP’s performance trends over the past five days. The recent surge coincides with the launch of new ETFs from Franklin Templeton and Grayscale, identified by the ticker symbols XRPZ and GXRP, now active on the New York Stock Exchange (NYSE) Arca. This introduction has attracted additional institutional interest in XRP. However, some concerning signals are developing behind the scenes that investors should monitor.

XRP Open Interest RSI Has Entered the Sell Zone

CryptoQuant community analyst Maartunn recently noted on X that the XRP Open Interest Delta RSI has skyrocketed into an overheated area. This metric evaluates the speed and extent of changes in Open Interest, which indicates the total number of open positions across all derivatives exchanges.

XRP Open Interest RSI

The chart shared by Maartunn demonstrates the surge in this metric in recent days. The XRP Open Interest Delta RSI has recently surpassed the 70 mark, signifying that investors have been rapidly opening derivatives positions. Maartunn describes this as “a classic sign of speculative leverage.”

While the total Open Interest remains significantly lower compared to its peak earlier this month, the recent rapid increase may warrant further observation. In earlier instances where the metric entered this zone, it has often aligned with local price peaks. Although XRP's price has continued to rise following the emergence of this sell signal, it remains uncertain whether this rally is sustainable or if the overheated derivatives market will present a challenge.

Additional Insights on XRP's Price Dynamics

In other developments, the drop of XRP below the $2 mark recently triggered a major loss-taking scenario, as highlighted by on-chain analytics firm Glassnode in an X post.

XRP Realized Loss

As illustrated in the chart above, this is not the first time this year that XRP’s Realized Loss has spiked after the price dipped to $2. Glassnode has pointed out that since early 2025, whenever XRP has revisited the $2 level, investors have recorded weekly losses ranging between $0.5 billion and $1.2 billion. This pattern emphasizes the significant influence of the $2 price point on market behavior.