XRP's open interest has seen a significant increase, accompanied by warnings of potential volatility due to rising leverage.
XRP Open Interest Surge
According to CryptoQuant, XRP's open interest has surged by an impressive 5.6%. At press time, the token is trading at $2.60, according to CoinGecko data.
Potential Risks and Warnings
The firm has cautioned about elevated risks posed by increasing leverage, which could lead to high volatility. "Leverage cuts both ways—stay sharp," CryptoQuant warned.
Impact on the Crypto Market
After the announcement of its inclusion in the strategic crypto reserve, XRP experienced a significant rally, coming close to the $3 mark. However, JPMorgan recently expressed doubts about the viability of including smaller altcoins like XRP in the crypto reserve.
While the increase in XRP's open interest highlights positive developments, market participants should be wary of potential volatility associated with rising leverage.
