Ripple ($XRP ) Price Analysis: Bear Traders Seize Control as Open Interest Falls Below $5.5B
XRP price traded lower for a second consecutive day, slipping 2.03% to $2.36 on May 17 amid rising legal uncertainty and bearish derivatives flows.
US District Judge Analisa Torres’ latest ruling in the SEC vs. Ripple case has sparked fresh doubts about XRP’s institutional clarity, while open interest and trader sentiment reflect decline in investor confidence.
Ripple (XRP) price tumbled to weekly lows around $2.3 on Friday after Judge Analisa Torres rejected a joint motion from Ripple and the SEC that sought clarity on the ban against institutional XRP sales.
The negative market reaction continued on Saturday, as Ripple price traded as low as $2.31 as the decision to uphold the $125 million settlement find now introduces fresh regulatory risks as appeals could run till end of the year.
Without that, Ripple remains trapped in a gray zone, and investors are beginning to price in the likelihood that this legal stalemate could last well into 2025.
The US Judge’s decision took many bull traders by suprise. Those impacted have spent the last 24 hours repositioning trades to suit the latest twist in the Ripple vs SEC case.
Coinglass‘ derivatives trading data shows XRP Open Interest is down 6.47% to $4.71 billion, reflecting a rapid exit from leveraged long positions.
Trading volumes have also collapsed by 23.35%, a clear sign that many traders are scaling down exposure to XRP amid the regulatory uncertainty.