XRP Price Stalls Amid Concerns About Ripple’s Affiliation with the US Government
XRP price has remained stagnant around the $0.59 range since retreating from $0.62, causing negative sentiment within the XRP community. The concern arose when a job posting on the Ripple website revealed that the company is a federal contractor or subcontractor to the US government. This statement has further fractured the community’s relationship with US regulators due to the ongoing SEC lawsuit against Ripple.
XRP Social Sentiment Hits a Two-Year Low
Looking beyond the price charts, on-chain data shows that the overall sentiment within the XRP ecosystem has turned negative. Santiment’s weighted sentiment metric indicates that discussions surrounding XRP have become predominantly negative, reaching a two-year low of 1.58% on January 14. If this negative sentiment escalates, it could lead to a major bearish downtrend for XRP.
XRP Traders Close Futures Contracts Worth $242 Million
The decline in XRP open interest relative to spot prices suggests growing bearish pressure. XRP open interest has dropped by 32% from $755 million to $513 million between January 3 and January 16, shedding $242 million in value. In contrast, spot prices have only declined by 8%. This decrease in open interest indicates disinterest among market participants and suggests that XRP derivatives markets have shrunk faster than prices.
XRP Price Forecast: Will it Revisit $0.50?
Considering the decline in open interest and dominant negative sentiment, there is a possibility that XRP price could retreat closer to $0.50 in the short term. The Parabolic SAR indicator also supports this forecast, indicating a bearish momentum for XRP. However, the bulls must break the psychological support level at $0.55 to confirm this prediction, while a rebound above $0.60 could invalidate it.
Hot Take: XRP Faces Negative Sentiment and Bearish Pressure Amid Ripple’s Government Affiliation
The XRP community has experienced negative sentiment due to Ripple’s affiliation with the US government, as revealed in a recent job posting. This sentiment is reflected in on-chain data, with discussions about XRP turning predominantly negative. Additionally, XRP traders have closed futures contracts worth $242 million, indicating growing bearish pressure. These factors suggest that XRP price may retreat further, possibly revisiting $0.50. However, bullish momentum could still prevail if the bulls manage to break key resistance levels. Overall, the future of XRP remains uncertain as it navigates through regulatory challenges and market dynamics.
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