Despite a recent decline, XRP's open interest remains high, indicating that traders are still engaged in leveraged positions. The XRP Ledger shows low on-chain activity, raising concerns about maintaining price levels above the $3 mark. Since peaking at $3.66 on July 18, XRP has dropped 15%, coinciding with a $2.4 billion decrease in futures open interest. This decline has led to fears of potential liquidations pushing XRP below $2.60. The previous rally was largely driven by leverage, but recent liquidations of $325 million suggest that excessive bullish positions may have been cleared. Currently, open interest is still 48% higher than a month ago, warranting caution. Monthly futures pricing indicates a neutral sentiment, trading at a 6% to 8% premium, with no significant demand for bullish leverage despite XRP's brief rise above $3.60. Speculation about a potential spot ETF approval in the U.S. adds to the optimism, but unfounded rumors about partnerships and low DeFi adoption on the XRP Ledger temper expectations. Read more AI-generated news on: https://app.chaingpt.org/news

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