XRP Drops 1.416% Amid Market Trends, Futures Interest Surges 41.32%

XRP's latest price was $2.55, down 1.416% in the last 24 hours. This decrease comes amidst a broader market trend, with XRP's one-week gain outpacing the broader cryptocurrency market, which has risen about 12% over the same period. This performance has positioned XRP as one of the stronger performers in the market, attracting significant trader interest. The cryptocurrency is trading higher than its 10-, 50-, and 200-day moving averages, indicating that both short-term and long-term trends are favorable for buyers. The relative strength index is at 68, just short of the overbought zone, suggesting there is still room for the rally to continue before reaching a ceiling. The moving average convergence divergence has also crossed higher, further supporting continued upward momentum.

XRP has seen a significant surge in futures open interest, with data indicating a rise from $2.42 billion to $3.42 billion in just one week. This increase suggests that new money is entering the market and traders are expecting further upside. The growing open interest coincides with a price rally, indicating elevated speculative activity and growing directional conviction among traders. The cryptocurrency has continued to trade resiliently around $2.5 over the past few days, recording a notable surge of 20.48% over the last seven days. Recent on-chain signals suggest that XRP will be forming a new resistance level above $2.5 soon.

Flare has launched a major upgrade that will enable traders to use real XRP tokens in DeFi. The network will allow users to perform complex DeFi operations with assets such as Bitcoin and Dogecoin. The first asset that will be available on the platform is XRP, as its associated Core Vault is now available on the XRP Ledger. Core Vaults are a mechanism that links assets such as Bitcoin or XRP to smart contract platforms, without requiring users to give up custody over their assets. Once the collateral is locked up in these non-custodial Vaults, the smart contract automatically issues equivalent tokens such as FXRP. This upgrade allows users to use XRP in DeFi operations, including lending, borrowing, yield farming, and staking. The key difference between Flare’s FXRP and similar bridged assets is in the custody and security, as previously, bridged assets have been a major source of security risks in the past. According to a report, cross-chain bridges accounted for over $1 billion in losses due to security breaches in 2022. Due to the custody issue, as well as the technical complexity involved, bridges accounted for 70% of all the losses in the crypto space.

A cryptocurrency whale recently deposited $4.4 million into decentralized trading platform HyperLiquid to open a leveraged short position on XRP. The whale has gone short on the Ripple-linked cryptocurrency with 8x leverage. This enormous short comes after XRP has gained over the past week. The adoption of XRP by financial institutions has been slower than expected, raising questions among crypto enthusiasts and financial experts alike. This reluctance may not be rooted in caution but in strategy. The research highlights the parallels between banks’ slow adoption of XRP and their historic resistance to innovations such as credit cards, ATMs, and online banking. XRP, touted as a revolutionary digital asset for cross-border payments, promises to settle transactions in three seconds and reduce fees by up to 60%. It also eliminates the need for pre-funded accounts, offering a significant advantage over the existing SWIFT system, which often takes days to process transactions. Despite these benefits, most banks continue to rely on SWIFT rather than embracing XRP. Ripple, the company behind XRP, has partnered with more than 300 financial institutions worldwide. However, the majority of these institutions use RippleNet without leveraging XRP itself. Notable exceptions include MoneyGram, which has incorporated XRP into its remittance operations. This gap between Ripple’s widespread network and XRP’s limited adoption raises questions about the underlying reasons. Historically, banks have been slow to adopt new technologies, even when these innovations promise significant efficiency gains. Credit cards, ATMs, and online banking—all now integral to modern banking—were initially met with skepticism and slow integration. XRP appears to fit this pattern. The hesitation may not be due to inherent risk aversion but rather a strategic delay as banks prepare to adapt without sacrificing profitability. One critical factor behind the delay is the need for banks to establish profit frameworks around new technologies. XRP, by significantly reducing cross-border transaction costs and eliminating pre-funded accounts, threatens the revenue streams banks have built around SWIFT and nostro accounts. As such, they are likely using the delay to develop new fee models, custody systems, and strategies to maintain revenue without sacrificing control. Control is a fundamental aspect of banking operations. As seen with JPMorgan’s development of Quorum, banks are not inherently resistant to blockchain technology—they just prefer systems they can control and monetize. The resistance to XRP adoption may, therefore, reflect a desire to develop in-house solutions or retain central control over financial processes. Instead of rushing to adopt XRP, many banks are likely using the delay to develop new fee models, custody systems, and strategies to maintain revenue without sacrificing control.