#MarketTurbulence XRP faces a decline in open contracts and neutral retail activity

The XRP derivatives market is sending weak signals as open interest (OI) in futures contracts plunges below 8 billion USD, after approaching nearly 9 billion USD last Thursday. This figure is significantly lower than the 10.94 billion USD recorded on July 22 – the time when XRP just reached its historical peak on July 18.

The prolonged decline in OI clearly reflects cautious sentiment in the market: investors are limiting their bets on the likelihood of a short-term breakout. If this trend continues, the prospect of XRP returning to the peak zone of 3.66 USD is likely to remain just a "distant dream" in the near future.

However, there are still bright spots. The Futures Retail Activity Through Trading Frequency Surge index provided by CryptoQuant indicates that there is still short-term upside potential.

Historical data also shows that red dots on the chart often appear when XRP's futures market is in an overheated state. The last time this occurred was from early December to January, when XRP's price surged to a local peak of 3.40 USD. Currently, this index remains in the neutral zone – a signal suggesting that the market still has potential to rise, without repeating the overheating condition.$XRP