$XRP
🚨 XRP Price at Risk as Open Interest Drops by $520M 🚨
Data from analysts shows that Ripple’s open interest has declined from $4.15 billion to $3.63 billion in just one week, shedding more than $520 million. This drastic decline follows a surge in long liquidations with more than $8M positions by long buyers being forcefully closed in the last 24 hours as the XRP price declined.
The declining OI may prevent an explosive Ripple rally as it indicates that futures traders are no longer willing to open new positions, amid the closure of existing ones due to price volatility. Nevertheless, the level of leverage remains notably high, with more than 75% of Binance traders opening long positions, causing the long/short ratio to reach its highest level in a month.
While the opening of new long positions shows that many traders anticipate the XRP price to recover, an unprecedented downtrend will trigger liquidations that will push the Ripple price lower as those with open positions sell.