If the court soon rules that XRP qualifies as a effect for US financial law, the same is probably true for other currencies. That would be a bad thing, as it will result in fines for the companies behind the tokens and means they are likely to disappear from the exchange platforms. However, since March 22, Ripple’s XRP token is up more than 50 percent to its highest price in 10 months, so the market believes Ripple will win the Securities and Exchange Commission (SEC) case.
Open interest is huge
Since the start of XRP’s rally, open interest has increased nearly 90 percent to $843 million. The open interest represents the number of open contracts in the futures market. At $843 million, this is now the highest level for XRP since December 2021, shortly after Bitcoin’s all-time high.
An increase in open interest along with an increase in price often means new capital is flowing into the market. At the time of writing, the funding ratethe cost of holding long or short positions, positive on most exchanges.
That means that bullish sentiment is currently dominating the market. Bitcoin is also doing great today with an increase of almost 2.0 percent and even a price above $ 29,000 last night. Momentum is starting to return for the crypto world.
Altcoin season coming up?
At the moment, Bitcoin is all the rage in the crypto world, but it could just be that XRP’s surges and a positive court outcome herald the start of a new altcoin season. “Maybe a Ripple win could send a bullish impulse through the entire risk curve (alt season),” Harland said.
We speak of an alt season in the crypto world when the smaller coins experience their highs. You often see that Bitcoin slows down at those moments and the market moves to smaller projects.
It’s funny to see how some analysts manage to create a narrative in this way. In principle, of course, a victory for XRP means little to nothing for a Solana, but in this way Alex Krüger frames it as if the party can start afterwards. If enough people believe that, it can happen.