Will XRP Price Stage Quick Recovery on Coinbase XRP Futures Filing?

Coinbase submitted a filing with the US Commodity Futures Trading Commission (CFTC) to introduce XRP futures trading, which is expected to launch on April 21. 

Bhushan Akolkar By Bhushan Akolkar Julia Sakovich Editor Julia Sakovich Updated 2 mins read
Will XRP Price Stage Quick Recovery on Coinbase XRP Futures Filing?

Key Notes

  • Coinbase's XRP futures launch follows Bitnomial’s introduction of the first CFTC-regulated XRP futures in the US last month. XRP futures are already available on major global exchanges such as Binance, OKX, Bybit, and BitMEX, highlighting growing institutional interest in the asset.
  • XRP has declined 8.53% in the past week, trading at $2.05 with a 30% drop in daily trading volumes.

On April 3, crypto exchange Coinbase submitted its filing for XRP futures to the US Commodity Futures Trading Commission (CFTC). The crypto exchange believes that the futures product will go live on its platform by April 21.

According to the certification filing, the XRP futures contract, trading under the symbol XRL, will be a monthly cash-settled and margined contract. The contract follows XRP’s market price and is settled in US dollars. Each unit represents 10,000 XRP, valued at approximately $20,000 based on the current price of $2 per token.

As per the announcement, Coinbase XRP futures contracts could be traded for the current month, and even two months ahead. In the case that XRP price shoots more than 10% in an hour, the trading for the futures contracts will be paused as a safety measure. The firm stated:

“The exchange has spoken with FCMs (Futures Commission Merchants) and market participants who support the decision to launch a XRP contract.”

Coinbase is not the first to introduce XRP futures in the United States. In March, Chicago-based crypto exchange Bitnomial launched the country’s first-ever CFTC-regulated XRP futures.

Globally, XRP futures trading is already available on major centralized exchanges, including Binance, OKX, Bybit, and BitMEX.

XRP Price Faces Crucial Test Ahead

Over the past week, the XRP price has dropped by 8.53% and is currently trading at a crucial support of $2.05. The daily trading volumes for XRP have dropped 30% to $4.79 billion, hinting that the overall investment sentiment is turning bearish.

On the other hand, the XRP funding rates have turned negative. Funding rates are recurring payments exchanged between traders in perpetual futures markets to maintain price equilibrium between the futures and spot markets.

Even if XRP price bounces back from the current levels, it still needs to give a breakout above the crucial resistance of $2.34 to stage a further rally to $3.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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