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While the crypto market is showing a slight recovery this week, Ripple’s XRP is telling a different story. Although the token briefly touched $2.30 earlier today, new data from CryptoQuant indicates a clear decline in trading interest. A key metric, the total number of open positions held by traders known as open interest, has dropped to its lowest level in a year. This suggests that many traders are pulling back, even as the broader market gains momentum.
Traders Exit XRP Positions En Masse #
CryptoQuant data shows that the total open XRP positions on Binance have fallen from over $1.7 billion to approximately $504 million. Just before that, it even briefly dipped to $473 million.
Open interest represents the total number of outstanding long and short positions held by traders. A sharp decline in this number means traders are closing their positions without immediately opening new ones. This points to waning conviction and a reduced willingness to make large bets.
The drop coincided with the moment XRP briefly fell below $2 over the weekend. According to CryptoQuant, traders are less inclined to open new positions, leading to a market driven primarily by quick, short-term transactions.
High Selling Pressure, Lack of Buyers #
Adding to the concern, funding rates—a mechanism where short positions pay when they are the majority—have often been negative over the past two months. This indicates that sellers are dominating and buyers lack the strength to counteract this pressure.
Despite the small rise to $2.23, CryptoQuant sees no clear signs that major market players or institutional parties are stepping in. This means the selling pressure is likely to persist unless trading activity picks up again.
Analysts See Room for a Bullish Scenario #
Nevertheless, not everyone is pessimistic. Analyst CRYPTOWZRD sees a strong daily chart and notes that XRP is also showing improvement against BTC. In his view, a minor pullback could actually be “healthy,” as it can create new entry points before the next upward move begins.
Analyst Ali Martinez also spots a technical pattern forming that often signals further price growth: a so-called “right-angled ascending broadening wedge.” However, he warns that this scenario only remains valid if XRP stays above the crucial $2 threshold.