Coinspeaker
Mar 19, 2025

XRP Price Faces Downside Risk as Open Interest Declines to $2.4 Billion

1 min

XRP has rebounded from $1.90 but faces resistance at $2.40, indicating caution among investors.

  • XRP's funding rate is negative, suggesting bearish sentiment in the market.
  • Negative funding rates indicate short sellers are paying long traders.
  • If the trend continues, XRP could decline to $2 or lower.
  • Analyst Ali Martinez warns of a lack of support below $2, risking a drop to $1.60.
  • XRP futures open interest has decreased from $5.67 billion to $2.4 billion, indicating traders are exiting positions.
  • A settlement in the SEC vs Ripple lawsuit may occur by mid-April, which could positively influence XRP and potentially lead to ETF approval.

Market dynamics suggest that without renewed interest from traders, XRP may face further downside risks.