Following Donald Trump's victory in the November 2024 elections, the popularity of XRP, one of the fastest-rising altcoins, has slowed down.
Current Situation with XRP
XRP, which surged to over $3, fell below $2 in April due to tariff tensions. After this, the cryptocurrency has stabilized around $2.
Open Interest Analysis and Volatility
XRP continues to show increased open interest, which has reached around $5 billion. This indicates heightened speculative activity in the derivatives market. Ryan Lee, Chief Market Analyst at Bitget, highlighted that the increase in open interest might lead to heightened volatility: "Over the weekend, XRP open interest rose to nearly $5 billion. This means that investors are engaged in significant speculative activity in the derivatives market. Such a rapid increase in open interest is indicative of strong potential momentum as market participants prepare for decisive moves."
Risks for Long Positions
The analyst also warned that long positions could be at risk if there is no clear catalyst to drive XRP's price higher. If such positions are liquidated, it could further apply pressure on the token's price: "Without a clear catalyst for XRP, open interest could be liquidated in either direction. If long positions are liquidated, downside pressure could intensify."
The situation with XRP remains uncertain, and further developments depend on market conditions and potential catalysts for price changes.
