- XRP’s rally is fueled by real demand from spot buyers while derivatives markets stay quiet.
- The token’s price reached $2.82 with funding rates remaining near zero, showing no leveraged involvement.
- XRP’s rise could accelerate if futures traders add positions, boosting momentum further.
In a surprising turn of events for XRP’s bullish trajectory, spot buying emerges as the singular catalyst driving the token’s rally, while derivatives markets remain notably subdued. According to Dom (@traderview2), a respected market analyst, XRP’s price momentum has yet to see contributions from perpetual futures traders, suggesting untapped potential for even greater upside.
The 12-hour XRP/USDT chart paints a compelling picture. XRP has climbed steadily to a current high of $2.82, representing a robust increase from its recent consolidative lows. Price action is being supported by the EMA (Exponential Moving Average), signaling sustained bullish momentum.
However, what sets this rally apart is the stark absence of engagement from leveraged traders. Aggregated funding rates are flatlining near zero, and the aggregated premium also reflects muted speculative activity, hovering around negligible levels. The current funding rate sits at 0.0005, reinforcing the notion that derivatives markets are sitting out this price action.
Why Spot Buying Is Steering the Market
Spot buying is often considered a more genuine indicator of demand since it involves the direct acquisition of assets without leverage. In this case, it has become the main driver behind XRP’s rally, with aggregated volume surging to levels not seen in weeks.
As of now, XRP’s aggregated spot premium sits at 0.0314, a noticeable deviation from previous market behavior. This premium signifies heightened demand from retail and institutional investors who are buying XRP outright rather than trading on futures or options contracts.
Dom highlights that “genuine demand for coins” has been the underlying force pushing XRP higher, a dynamic that could signal increasing confidence among investors in XRP’s long-term prospects. This organic buying pressure has driven XRP to new highs, with the potential for further upside as interest from leveraged traders is yet to materialize.
What Happens When Perpetual Traders Join the Party?
Despite the bullish sentiment, futures traders remain conspicuously absent. Historically, the influx of leveraged positions tends to amplify price movements, either accelerating rallies or exacerbating selloffs. If and when perpetual traders begin piling into longs, the compounding effect of spot and derivative demand could create a parabolic move for XRP.
However, the lack of activity in the derivatives market also serves as a double-edged sword. It provides stability by reducing the risk of liquidation cascades that often follow sharp moves in highly leveraged markets. For now, XRP enjoys a rare period of price discovery-driven purely by spot demand, a development that many analysts see as a healthier, more sustainable form of growth.
Outlook: A Waiting Game
The next leg of XRP’s journey hinges on whether perpetual futures traders decide to enter the fray. With funding rates still flat and spot premiums steadily climbing, the rally will likely persist in the short term. Dom’s analysis underscores the possibility of even greater gains if speculative traders re-engage, creating the potential for a surge well beyond $3.
For now, XRP’s rally is a testament to the power of genuine market demand. As the market waits for derivatives traders to take a position, the question remains: how high can spot-driven momentum push XRP before the broader market catches up?
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
