XRP continues to fall, but investors are finding reason to remain optimistic as a Ripple swell fuels hopes for a turnaround.
According to data provided by Coinglass, XRP futures trading has seen an incredible spike in the past hour, with open interest soaring 3.88%.
A massive 1.55 billion XRP is currently committed in active futures contracts, and the spike in hourly XRP open interest indicates a sudden turn from a bearish trajectory.
This is because the surge comes at a time when major altcoins are showing a significant 13% decline in the past 24 hours, sparking curiosity about the sudden change in investor sentiment.
Interestingly, the sudden spike in XRP open interest coincides with the start of Ripple’s long-awaited swell event, which started just about an hour ago.
XRP community goes wild as Ripple swell begins
Since the announcement of the Ripple Swell Event, the XRP community has been buzzing as expectations grow that Ripple CEO Brad Garlinghouse and the rest of the leadership will pull out of any major announcements that could drive a significant increase in the price of XRP.
The positive enthusiasm surrounding the event is evident from the sudden change in investor sentiment witnessed in the XRP derivatives market at the start of the event.
Therefore, the timing of the hourly spike has raised many eyebrows, as Ripple swells, which are known to focus on things like regulatory discussions and Ripple's future developments, have historically caused large price movements for XRP.
This surge has occurred despite widespread bearish sentiment that has seen XRP drop more than 13% in the past 24 hours, but traders appear increasingly looking to take advantage of the underlying market dynamics that could be triggered by the bullish rally stoked by this event.
The Ripple swell is now in full swing, with all eyes on XRP as traders eagerly await the asset's next price move. As such, traders are aggressively entering new positions in the XRP derivatives market while increasingly committing their holdings in anticipation of a significant announcement that could trigger the next price rally for XRP during a swell event.
