XRP’s open interest (OI) – basically, the total amount of money bet on XRP’s future price – has taken a massive hit. In just under three months, it’s fallen by over $4.6 billion! This huge drop shows that traders are losing confidence in XRP’s short-term prospects.
The Numbers Tell the Story
Data from Coinglass shows a dramatic fall. In mid-January, XRP’s OI hit a high of around $7.87 billion. Then, the bottom fell out. By the end of February, it was down to a measly $3.01 billion – a drop of over 50%! Even now, it’s only slightly above that low point. Binance, one of the biggest crypto exchanges, saw a similar crash, with XRP OI dropping from $1.62 billion to $619.8 million.
Why the Drop?
Several things likely contributed to this massive decline:
- Market Volatility: The whole crypto market has been shaky lately, making investors nervous.
- XRP Price Correction: XRP’s price has also fallen, down around 15% in the last month, further dampening enthusiasm.
- Traders Closing Positions: The drop in OI suggests traders are closing their bets rather than making new ones. This points to less trading activity and overall waning interest in XRP.
A Bold Prediction
Despite the gloomy numbers, one analyst on X (formerly Twitter), “Steph in Crypto,” is predicting a massive price surge for XRP – all the way to $10! This prediction is based on a technical analysis pattern (a “Golden MACD Cross”) and a comparison to XRP’s price movements in 2024. The analyst believes that history might repeat itself, leading to another big price jump after the current period of low activity.
