The cryptocurrency market is witnessing a significant decline in open interest for XRP. This change is tied to several factors, including the behavior of large investors and potential support zones.
Decline in XRP Open Interest
Over the past month, open interest in XRP futures has decreased by 30%, falling to $7.7 billion from $11 billion, while prices have retreated from a peak of $3.66. A decline in open interest typically reflects a dip in speculative activity, signaling either profit-taking or waning conviction among traders.
Whale Pressure
Data from CryptoQuant indicates that XRP's recent rally to $3.66 was accompanied by significant inflows to exchanges from large investors holding 100,000 to 1 million XRP. Historically, such spikes in exchange inflows have preceded major market tops.
Future Prospects for XRP
Despite the current drop in open interest, the support level for XRP in the $2.33–$2.65 range remains relevant. If XRP holds this zone, it could set the stage for the next growth phase, as the overall technical structure of the asset remains robust against short-term volatility.
The drop in XRP open interest raises caution, but it also opens opportunities for forming a price bottom. If key support levels are maintained, the asset may return to growth in the long term.
