Main takeout:
Despite the recent decline, the XRP disclosure interest still rises, suggesting that merchants are still in use.
XRP’s low -onChain activity raises questions about sustainable prices of more than $ 3 resistance.
XRP has fallen 15% since reaching $ 3.66 on July 18, with a decrease of $ 2.4 billion in XRP Future Open Interest. Traders are now concerned that everyday market volatility can lead to clearing of terraced, leading to XRP to less than $ 2.60.
The above chart clearly shows that Leverage has fueled 68.7% rally between July 1 and July 18, when XRP rose from $ 2.17 to $ 3.66. The total XRP FUTURE’s public interest reached a record $ 11.2 billion on July 18, down to $ 8.8 billion, or the US dollar decreased by 21%. This reduction has stimulated speculation that some investors can change their focus elsewhere.
Even if measured by XRP units, the current 28.2 billion contracts have been reduced by 12% in the peak. During the two weeks on July 25, it can be argued that most of the overly strong leverage, which has a total of $ 325 million, has already been washed. Still, public interest is 48% higher than a month ago, which remains in XRP terms.
The XRP futures will be steadily maintained despite the $ 3 re -testing and ETF guessing.
It is useful to analyze monthly futures prices to evaluate whether whales and market manufacturers are more interested in $ 3 support. Under neutral conditions, this contract is generally traded from 5%to 10%annually compared to the spot market.
Over last week, monthly XRP futures have been traded continuously from 6% to 8% premium, indicating that neutral feelings were not destroyed by $ 3 re -test. Importantly, even if the XRP rises to more than $ 3.60, the demand for optimistic leverage does not soar, reducing the risk of liquidation in the normal market swing.
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Some of the recent optimism surrounding XRP are based on the speculation of the approval of the US SPOT Exchange-Traded Fund (ETF). These events can help multiple altcoins, including Litecoin (LTC), Solana (SOL) and Cardano (ADA).
However, with the legal accumulation trend, the market was affected by the false claims of several banks who adopted the director of XRP and the false claims of partnerships with Swift, a global payment message system. This unfounded rumor attracts the traders’ attention even if there is a lack of traction and reliable evidence in social media.
In fact, XRP’s distributed financing (Defi) application has not yet been adopted. According to RWA.XYZ data, only $ 133 million token assets are in the network, lacking in the top 10 and less than $ 190 million in Avalanche.
Similarly, the Distributed Exchange (DEX) activity of the XRP director does not place this in the top 50 blockchains. In comparison, the SUI block chain handled $ 13.3 billion in Dex volume on the 30th, and SEI handled $ 14.3 billion over the same period.
Even if the XRP derivatives reflect the current neutral market conditions, the trader will find clear evidence of the continuous demand for the XRP director before establishing a consistent strong momentum for more than $ 3.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.