XRP could be in the midst of a “leverage-driven” pump as the price of the asset soars to reach new yearly highs.
Analysts warn Ripple’s native XRP (XRP) token could be experiencing a “leverage-driven” pump as the price of the asset soars to reach levels not seen since 2021.
In a Dec. 1 post to X, CryptoQuant analyst Maarten Regterschot noted that open interest in XRP — a measure of open derivatives positions — had spiked massively in the last 24 hours, warning that sharp upticks can result in a quick sell-off.
“Open Interest is up 37% already — watch for volatility. The last similar event led to a -17% drawdown,” said Maartuun.
