Over the past week, significant changes have occurred in the XRP market. Open interest in XRP futures has increased by 38% despite recent price fluctuations.
Rise in XRP Open Interest
On Sunday, XRP's open interest surged by 38.03%, indicating strong investor commitment to the asset. Currently, $7.24 billion is allocated to XRP's futures market. This rise in open interest suggests that many traders are maintaining their positions in anticipation of a potential rebound.
Overall Market Condition and XRP Price
In the past week, the price of XRP has declined by 9.5%. The majority of the losses occurred on Friday and through the weekend. One of the contributing factors was the disappointing U.S. employment report, which revealed only 73,000 new jobs were added, sparking risk-off sentiment across financial markets.
Reasons for XRP Price Drop
The current drop in XRP's price may also be attributed to unconfirmed rumors of a cryptocurrency ban in China, circulating on social media this Sunday. Popular crypto analyst Ali Martinez noted that XRP recently showed a sell signal on the 3-day chart, highlighting $2.40 as the next key support level.
In conclusion, despite the rise in open interest, the XRP market faces several factors contributing to price decline, creating uncertainty among investors.
