XRP Open Interest and CME ETF Announcement Triggers Altcoins Recovery

• XRP traders showed resilience on Friday by holding on to long positions.
• XRP’s open interest was held firmly above $3 billion.
• CME Group’s ETF announcement triggered an altcoins’ rebound on Friday.

XRP traders showed resilience on Friday by holding on to long positions despite the cryptocurrency’s decline below the crucial $2 support. The traders’ reluctance to close long positions ensured that XRP’s open interest stayed above $3 billion.

With the bullish sentiment intact, XRP rebounded from a $1.94 low on Friday, returning above $2 to trade for $2.18 at the time of writing. The recent price action has boosted investors’ confidence, raising the hopes of XRP users and giving credence to the opinion that the recent decline is a temporary pullback.

CME Group and Solana Futures

Meanwhile, CME Group announced plans to introduce a Solana futures contract on March 17, pending regulatory approvals. The announcement reignited existing ETF optimism among crypto users, considering the several altcoins awaiting ETF approvals from the SEC, including the pending XRP ETFs. Therefore, there is increased buying interest in XRP and the cryptocurrencies with pending ETF applications.

Yesterday’s rebound saw XRP gain almost 14% during the US trading session, while SOL, the main subject, rose about 20% by surging from a $125.36 low to $151.10 in the early hours of Saturday. 

Related: XRP Meets Predicted Support, Prepare For a Reversal — Analyst

However, it is worth noting that SOL has been a victim of sustained bear pressure following the recent controversy surrounding the Libra meme coin rugpull and the impending 11.2 million SOL payouts from FTX Estate.

ETF Speculation Drives Interest

Despite the heightened FUD in the crypto market, investors’ interest in XRP, HBAR, and Litecoin remains evident. 

Related: Solana Futures ETFs Listed on DTCC, Spot ETF Hopes Rise

Analysts have linked the growing interest in these digital assets with their pending ETF applications, which most people think the SEC would approve. Crypto users expect the products to open the markets of digital assets to increased adoption, considering it would allow the influx of institutional investors, like it was with Bitcoin after the January 2024 spot ETF approval.