Analyst highlights XRP's open interest surge and price stability

A recent surge in XRP’s (CRYPTO:XRP) open interest indicates a growing interest among investors in the cryptocurrency, according to analyst Iliya Kalchev from Nexo.

Kalchev suggests that this increase positions XRP as a significant player in the crypto market for the foreseeable future.

He attributes the rise in open interest to an expanding investor base and increased trading activity.

The open interest for XRP reportedly rose over 30%, bringing the total across major exchanges to approximately $4 billion.

However, analyst Maarten Regterschot cautioned that this spike might be “leverage-driven,” which could heighten volatility risks.

Kalchev noted that favorable regulatory developments and a rallying cryptocurrency market have contributed to this trend.

He emphasised that XRP's foundational strengths and its growing appeal within the crypto community are key factors driving this surge.

According to Coingecko data, XRP has maintained a price above $2 since December 1, a level not seen since January 2018.

XRP’s rising popularity aligns with continued regulatory successes for its issuer, Ripple, which is set to launch a stablecoin after receiving approval from the New York State Department of Financial Services.

“The trajectory of XRP will depend largely on how Ripple’s strategic initiatives unfold and how the broader crypto market continues to mature,” stated Kalchev.

He believes that recent progress suggests trends that could sustain XRP's relevance and growth in a competitive landscape.

The ongoing developments around Ripple and XRP's integration into cross-border payment solutions further enhance its position in the market.

As XRP continues to attract attention from both retail and institutional investors, analysts predict potential price targets ranging from $3 to $5.34 by early 2025.

At the time of reporting, the XRP price was $2.36.