CryptoQuant, a renowned cryptocurrency analysis company, recently published a comprehensive analysis on Ripple (XRP), highlighting the significant increase in its Open Interest (OI).
According to CryptoQuant, the OI on XRP has increased significantly compared to other cryptocurrencies. This trend is clearly reflected in the chart presented in the analysis, which shows a significant increase in open interest.
The report shows that as the price of XRP rises, open positions also increase. This shows that investors are opening more positions expecting an increase in the price of XRP.
However, CryptoQuant also warns of potential market volatility. As open interest increases with price, it not only reflects investor expectations and actions, but can also lead to sudden market fluctuations, according to the company. Therefore, the company said to closely monitor market volatility and prioritize risk management.
At the time of writing this article, the XRP price is trading at $0.4983 after an increase of approximately 1% in the last 24 hours. In the last week, the price of the altcoin increased by 2.23%.
*This is not investment advice.