XRP FUTURES Open Interest 37% -Altcoin Trader goes beyond the ship?

XRP (XRP) has experienced a sharp 25.7%modification for seven days at the end of February 6, but the level of $ 2.30 has a strong purchase interest every time it is tested. The 8%daily profit, which brought XRP to $ 2.50 on February 7, was not widely celebrated because the professional trader significantly reduced the leverage position.

The total XRP futures interest interest, which reflects the overall demand for this contract, has decreased 37% since its top score on January 15.

In the derivative market, it should be noted that long (purchase) and short (sales) positions are always in line. Therefore, the decrease in the total number of contracts should not be considered a weak signal. However, increasing the interest of institutional investors seems to be positive because it tends to increase liquidity and attract more transaction capital.

To see if the XRP whale has been weakened, you need to analyze your premium for monthly gift contracts. In the neutral market, this contract is generally traded from 5% to 10% annual premiums to compensate for longer agreements.

When analyzing XRP futures data, two key points are noticeable. First, the premium quickly recovered the 5% neutral threshold after the flash clash on February 3. More importantly, even if XRP trades 25.5%more than 25.5%, the annual gift premium has been strong. Maximum $ 3.40.

Nevertheless, XRP is heavily affected by retail transactions. The aggregation of permanent contracts (reverse swaps) for platforms such as Binance, BYBIT and BITGET is $ 2.5 billion. To understand whether the so -called ‘XRP Army’ is weakening, futures financing rate must be investigated, which usually exceeds 1.9%per month in the strong market.

Currently, XRP Perpetual ContractS financing charges are 0.2%per month, the bottom and weakness of the neutral range. This improved at the level observed on February 3, but remains much lower than the 0.9%recorded two weeks ago. In terms of derivatives, this suggests that there is a lack of optimism among retailers.

There is a lack of evidence in the adoption of XRP and the claim of financial affairs.

XRP price fluctuations are often closely related to news and events, and there are rumors that have no definite evidence. For example, some influenza argued that despite the lack of reliable sources to support this claim, Ripple’s CEO of Ripple, it is appointed to the Trump administration’s Cryptocurrency Council.

Other influential people suggested that traditional banks could be “nodes of ripple networks to access XRP.” This claim is very doubtful because Ripple focuses on integrating tokenized assets into the network.

There is no specific evidence to support these ideas, whether it is adjusted to create a fantasy of the adoption of XRP within traditional finance or included in the government strategy reserves. According to defillama data, XRP remains a very speculative asset with a total value lock (tvL) less than $ 100 million.

relevant: The potential candidate of Trump’s encryption committee said:

The XRP can resume $ 3, but no fundamental change has occurred except for the emergence of a more encrypted government. This development increases the possibility of success in the ongoing court case of Ripple, but does not directly affect the price of XRP.

The main legal case directly related to Ripple is the US Securities and Exchange Commission lawsuit, focusing on whether a specific XRP sales are not registered. This case is currently in the appeal stage. However, the result of the court ruling will not greatly change the trajectory of the XRP adoption or the trajectory of the public ledger network used in the banking sector.

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.