XRP experiences its most significant bullish momentum since January 2018, driven by record-high futures open interest.

XRP Hits 7-Year High Amid Record Derivatives Activity, Surge in Trading Volumes

XRP, the payment-focused cryptocurrency, has surged dramatically to seven-year highs, overcoming regulatory hurdles that kept it from reaching new peaks during the 2020-21 bull run. As the token climbs, derivatives markets tied to XRP have seen record trading volumes and open interest, underscoring the growing excitement surrounding the asset.

In January, XRP’s price rose by 50%, reaching levels above $3, extending a remarkable 240% rally from the previous quarter. This sharp rise has driven XRP’s market capitalization to $176.75 billion, making it the third-largest cryptocurrency, just behind Tether (USDT). Over the past seven days, XRP has gained 30%, signaling a remarkable upswing in momentum.

The cryptocurrency is experiencing its fastest rally since January 2018, as measured by the relative strength index (RSI), a key metric for tracking price momentum. XRP’s 12-month RSI has surged to 92, its highest level since October 2017, signaling the strongest momentum observed in seven years. Though an RSI reading above 70 is typically seen as “overbought,” this does not always indicate a coming correction, as markets can stay in an overbought state longer than expected.

XRP’s growth has been driven by multiple factors, including the rise of Ripple’s stablecoin RLUSD and growing speculation about the potential approval of a spot XRP ETF. The surge also comes amid broader market recovery, with Bitcoin (BTC) leading the way, climbing toward the $100,000 mark.

Along with the price surge, XRP’s trading volumes have surged, with the spot market tally tripling to over $23 billion in the past 24 hours, validating the rise. Derivatives volumes have more than doubled to $34 billion, signaling significant investor confidence.

XRP’s perpetual futures open interest has hit a record high of 2.34 billion XRP, with funding rates at 13%, a far cry from the overleveraged levels seen in December when funding rates approached 100%. This indicates that XRP’s rally is supported by healthy market conditions, suggesting further potential for price increases.

With Bitcoin leading the charge in the broader market, pushing past $100,000, risk appetite is on the rise, bolstering altcoins like XRP and further fueling the ongoing bull market.