The ongoing bearish sentiment in the crypto market has led to a 60% decline in XRP’s open interest (OI) since its peak in July when it was valued at $1.19 billion. Unexpectedly, this drop was noted right after the XRP’s gains following Ripple Labs’ court victory against the SEC in July. The downturn is not the only factor pulling the rug for XRP, the SEC’s decision to appeal the ruling has fueled selling activity, and there are concerns that XRP’s price could fall below the crucial level of $0.52.
Let’s analyze the scope of XRP in the beast mode.
Trader’s Losing Interest in XRP?
Due to less interest from the traders, XRP’s open interest (OI) has experienced a significant decline of $725 million. While on-chain data says it’s going downwards drastically. But data comparison from last month shows a peak of $1.19 billion, from here the OI levels have fallen to approx $465 million today, marking a negative growth of 60.92%.
What is the link of OI with XRP Price?
If you look at the charts well, XRP OI represents the total value of derivative contracts linked to XRP’s price movement, including Futures and Options contracts. Based on this the value reflects total investment by market participants in these contracts. A fall from $1.19 billion to $465 million reveals there is a lot of bearish movement traders are selling XRP hastily, which is often interpreted as a lack of confidence in the token’s future price direction.
According to the Coinglass data majority of traders have placed their XRP OI orders on the Binance exchange, with a cumulative value of $128.85 million, and $93.23 million on Bybit. One of the reasons for losing the position is also the fear of Binance going bank run in the near term.
Notably, XRP’s value reached its peak last month at $1.19 billion, a level not seen in recent years since November 2021. During that period, XRP traded around $1.20, which coincided with the peak of the previous bull market. The primary driving force behind this surge was the regulatory lawsuit victory. A U.S. federal court ruling clarified that XRP is not a security, instantly causing XRP’s price to double.
Any Hope for XRP Price?
Although predictions may disappoint XRP enthusiasts, there’s a silver lining. The support levels for the digital asset suggest that any upcoming losses might be small. So, while a drop is expected, it might not be a sudden and significant decline, but rather a gradual decrease.
Currently, bulls and bears are at loggerheads to wage a war to trigger the next move. As of writing, XRP price trades at $0.523, surging over 1.7% in the last 24 hours.
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