The Decline in XRP’s Open Interest
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. This drop in OI comes after XRP’s gains following Ripple Labs’ court victory against the SEC in July. However, the SEC’s decision to appeal the ruling has fueled selling activity, and there are concerns that XRP’s price could fall below $0.52.
XRP’s Losing Interest from Traders
XRP’s open interest (OI) has experienced a significant decline of $725 million due to less interest from traders. On-chain data shows a drastic downward trend. Comparing data from last month, the OI levels have fallen from $1.19 billion to approximately $465 million today, marking a negative growth of 60.92%.
The Link Between OI and XRP Price
XRP OI represents the total value of derivative contracts linked to XRP’s price movement, including Futures and Options contracts. The fall from $1.19 billion to $465 million indicates bearish movement and a lack of confidence in the token’s future price direction. The majority of traders have placed their XRP OI orders on Binance and Bybit exchanges.
XRP’s Peak Value and Regulatory Lawsuit Victory
XRP reached its peak value last month at $1.19 billion, which coincided with the regulatory lawsuit victory. The court ruling clarified that XRP is not a security, causing its price to double. However, the fear of Binance going bankrupt has also contributed to the decline in XRP’s position.
Hope for XRP Price
While a drop in XRP’s price is expected, the support levels for the digital asset suggest that any upcoming losses might be small and gradual. Currently, the market is in a state of uncertainty as bulls and bears are at loggerheads. As of writing, XRP’s price is trading at $0.523, showing a 1.7% surge in the last 24 hours.
Hot Take
The decline in XRP’s open interest and the uncertainty surrounding its price direction raise concerns for its future. However, the gradual decrease in support levels and the recent price surge suggest that there may be hope for XRP in the near term.
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