The development that caused the increase in Ripple‘s price occurred with Judge Torres stating in a court decision on October 3 that the requirement of a motion for temporary relief, which is a fundamental condition for approving a judge’s appeal, was not necessary. This decision sparked a debate among experts in the field of crypto law. Additionally, Ripple announced that it will start operating in the region with a license it obtained in Singapore.
Following this rise, Gabriel Shapiro, the general counsel of Delphi Labs, advised caution in XRP‘s upward movements by reminding that SEC officials could appeal this case. The regulatory agency will have to wait for the decision in the case scheduled to begin on April 23, 2024.
On October 4th, Ripple announced that it has been granted a license for payment services to its local institution, Ripple Markets Asia Pacific. With this license obtained in Singapore, the company will start providing services and offer them to users after obtaining preliminary approval.
According to the Ripple team, this license will allow XRP to serve as a corporate bridge between two currencies and further scale its On-Demand Liquidity service. This service will eliminate the need for pre-funding of accounts and reduce operational costs.
While this rise in XRP excites investors, there is silence in the futures market. The open interest, which measures the nominal amount of contracts still in operation, increased by 13% compared to the previous day. Additionally, the current $590 million open position amount remained below the $794 million seen in the previous month.
The XRP futures funding rate remains consistently below 0.01% every eight hours. This corresponds to a weekly rate of 0.20%. Positive values cover the leverage cost of long positions, but a funding rate below 1% per week cannot be considered expensive.
Considering that the highest level of $0.54 in the last six weeks has not been overcome on the XRP side and the leverage demand in futures contracts has been lacking, it seems that the recent positive news flow has not been able to convince investors that XRP is about to enter a bull run.