XRP Sees 9% Decline Amid Market Downtrend

XRP experienced a 9% decline over the past 24 hours, reflecting a wider market downtrend. This decline coincides with limited market reactions to Donald Trump’s Strategic Bitcoin Reserve and the recent White House Crypto Summit.

With XRP’s bullish momentum decreasing and volatility rising, the token may face additional price drops in the near future.

XRP Traders Exit Positions as Open Interest and Price Decline

As XRP’s price drops, open interest among futures traders has also decreased, now standing at $3.39 billion, a 3% decline in the same timeframe.

Open interest measures the total number of outstanding derivative contracts, such as futures or options not yet settled. A decrease in open interest alongside a price drop signals reduced market participation.

This trend suggests XRP traders are closing positions without opening new ones, pointing to diminishing market momentum and uncertainty regarding its price direction.

XRP’s funding rate has been consistently negative over the last two days, reflecting higher demand for short positions and reinforcing bearish sentiment. Currently, it is at -0.0040%.

Funding rate refers to the periodic fee exchanged between long and short traders in perpetual futures contracts to maintain alignment with the spot price. A negative funding rate indicates greater demand for short positions, further underscoring bearish market sentiment.

XRP’s Selling Pressure Intensifies—Will Bulls Step In to Defend Support?

On the daily chart, XRP’s negative Balance of Power (BoP) indicates low demand. This indicator currently trends downward at -0.38.

BoP assesses the strength of buying versus selling pressure based on price movements over time. A negative value implies sellers are dominating.

If XRP demand continues to weaken, it might fall below the support level of $2.13, potentially dropping to $1.47.

However, if market conditions turn bullish and XRP traders start accumulating, the price could rise past the resistance at $2.93, attempting to reclaim its all-time high of $3.40, last noted on January 16.