Recent data shows a significant decline in futures open interest for XRP, raising concerns among traders and investors.
Decline of XRP Open Interest
Over the past month, XRP futures open interest has plummeted by 30%, dropping from $11 billion to $7.7 billion. This decline indicates a reduced interest from investors and may signal a reassessment of XRP's short-term prospects.
Comparison with Past Drops
A similar sharp decline was observed in January, when open interest fell from $8 billion to $3 billion. This was followed by a significant price drop of over 50% for XRP. Historical data underscores the importance of the current situation.
Future Prospects for XRP
Despite the current decline in open interest, there is a possibility that XRP could encounter strong buyer interest in the range of $2.33 to $2.65. This price range represents a support level where buyers may view the asset as undervalued.
The 30% decline in XRP open interest signals reduced speculative activity, which may precede price corrections or buying opportunities at lower levels.
