On March 19, Ripple CEO Brad Garlinghouse announced that the US Securities and Exchange Commission was cleared that the company was cleared about $ 1.3 billion in unregistered securities. Following the news, XRP (XRP) surged to $ 2.59, but profits gradually disappeared as they decreased to $ 2.02 by March 31 as they experienced 22%modifications.
Investors are worried that XRP has traded 39%, 39% lower than $ 3.40 since January 16, so investors are imminent. In addition, XRP permanent future (reverse swap) represents powerful demand for leverage bearlist betting.
Due to the decrease in XRP, demand for weak bets has increased.
The financing rate changes positively when long (buyers) find more leverage and negative demand. In the neutral market, it changes between 0.1% to 0.3% per 7 days to offset the risk of exchange and capital costs. On the contrary, negative funding rate is considered a strong weak signal.
XRP futures 8 -hour financing ratio. Source: LAevitas.ch
Currently, XRP financing fees are converted to 0.3%per share to -0.14%per 8 hours. This indicates that the weak merchant pays the leverage cost by reflecting the weak investor trust in XRP. However, traders also need to evaluate the demand for XRP margin and decide whether the weak feelings will expand beyond the futures market.
Unlike the derivatives that buyers and sellers always need, the margin market can be used for traders to borrow stablecoins to purchase XRP. Similarly, the weak merchant can borrow an XRP to open a short position to expect price drops.
XRP margin long -term ratio in OKX. Source: OKX
OKX’s XRP long -range margin ratio is twice as long as the lowest LONG (buyer) is the lowest level for six months. Historically, extreme confidence has been pushed more than 40 times, and less than five times reads are generally considered a weak signal.
Trump has raised XRP awareness and opened a way for future prices.
Despite Cryptocurrency’s attention from mainstream media, both XRP derivatives and margin markets signal weak momentum. In particular, on March 2, US President Donald Trump, along with XRP, Solana (SOL) and Cardano (ADA), referred to as the potential candidates for the national digital asset strategy reserves.
Google search trend of XRP and BTC. Source: GoogletRends / Cointelegraph
For a while, the Google search trend for XRP surpassed the BTC’s things between March 2 and March 3. A similar spike of Ripple CEO Garlinghouse CEO Garlinghouse CEO’s predictive SEC ruling has occurred. As the third largest Cryptocurrency (excluding Stablecoins), the XRP benefits the initial adoption and liquidity.
relevant: Is the XRP price of about $ 2 or is the end of the bull market? Analyst’s weight
The conversation broker, a global traditional financial broker, announced the expansion of cryptocurrency products, including SOL, ADA, XRP, and Dogecoin (Doge) on March 26. Since 2021, this platform has supported transactions between Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
The wider adoption of traditional brokers combined with the Google search trend increase is further enhanced as the main Altcoin of XRP. In addition, if the macroeconomic conditions are improved, the stages of inflow increase are set, and retail investors actively seek marketing charms as an alternative to traditional finance such as Ripple.
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.