- XRP Faces Increased Volatility: XRP dropped 2.6% to $2.35, with open interest falling 6.67% to approximately 2.03 billion XRP, suggesting traders are unwinding positions amid heightened uncertainty.
- Volume Plummets, Support in Focus: Trading volume plunged 38.82% to $3.2 billion as profit-taking hit following XRP’s earlier 140% rally. The token is now testing the $2.30 support level as investors remain cautious.
- Legal Uncertainty Lingers: Ripple’s ongoing legal battle with the SEC has resurfaced as a potential source of volatility, though Ripple executives downplayed the impact, insisting the situation is under control without new regulatory risks.
XRP’s been on a wild ride lately – volatility ramped up in the past 24 hours, leaving investors a bit rattled. According to CoinGlass, XRP’s open interest is sitting around $4.78 billion, but there’s a twist. The number of tokens tied up in futures contracts dropped by 6.67%, which translates to about 2.03 billion XRP.
Open interest measures how many contracts are still open and not yet settled. When that number drops, it usually means traders are pulling back, closing positions, or just plain losing confidence. And that’s exactly what we’re seeing here – a pretty sharp drop that’s got people wondering what comes next.
Trading Volume Tanks, Support in Focus
Right now, XRP is trading at $2.35, down 2.6% on the day. It’s been flirting with that $2.30 support level, a key zone that traders are watching closely. Meanwhile, trading volume has fallen off a cliff – down 38.82% to $3.2 billion.
Analysts say the volume drop is likely due to profit-taking. Short-term holders who rode the recent rally are cashing out, and with so much price fluctuation, some traders are stepping aside to wait for a clearer trend.
Flash Rally Reversed
Earlier this week, XRP was flying – up over 140% at one point, outpacing even Bitcoin, which was mostly flat. But just as fast as it spiked, it’s pulled back. And that kind of sharp rise and fall usually raises questions. Was it just a hype-driven pump? Or was it the start of something bigger that lost steam too soon?
Ripple’s Legal Situation – Adding to the Uncertainty?
Some folks are linking XRP’s recent swings to updates in the ongoing Ripple-SEC legal battle. A recent development in the case has been interpreted by some as a setback, adding a fresh layer of uncertainty.
But Ripple execs aren’t sweating it. One senior executive downplayed the impact, saying the update doesn’t affect Ripple’s operations or XRP’s legal standing. According to them, it’s all under control – no new risks on the horizon.
What’s Next?
Despite the dip in open interest and the volume drop, XRP is still holding above key support levels, and some big players are still in the game. But the sudden pullback and the legal uncertainty have some traders feeling cautious.
If XRP can hold that $2.30 support and reclaim momentum, the bulls might step back in. But for now, the market’s waiting – and watching – to see what happens next.
