Ripple’s Open Interest Sheds $520M as XRP/ETH Hits One-Month Low

XRP price is facing intense bearish pressure after it lost more than 7% of its value in just seven days, notably higher compared to Ethereum’s 3% dip. XRP’s downward trend has caused the altcoin’s open interest to decline by more than $520M while the XRP/ETH ratio has plunged to a monthly low. XRP Price at Risk as Open Interest Drops by $520M Data from Coinglass shows that Ripple’s open interest has declined from $4.15 billion to $3.63 billion in just one week, shedding more than $520 million. This drastic decline follows a surge in long liquidations with more than $8M positions by long buyers being forcefully closed in the last 24 hours as the XRP price declined. The declining OI may prevent an explosive Ripple rally as it indicates that futures traders are no longer willing to open new positions, amid the closure of existing ones due to price volatility. Nevertheless, the level of leverage remains notably high, with more than 75% of Binance traders opening long positions, causing the long/short ratio to reach its highest level in a month. While the opening of new long positions shows that many traders anticipate the XRP price to recover, an unprecedented downtrend will trigger liquidations that will push the Ripple price lower as those with open positions sell. XRP/ETH Falls to Monthly Low XRP price has been underperforming against other top altcoins, especially Ethereum. The XRP/ETH ratio has plunged to its lowest level in one month, and this suggests that while Ripple is shedding gains, Ethereum has successfully defended its support level and will likely continue dominating the altcoin market. This ratio now stands at 0.00118, and if the price of XRP continues with the downward trend, and loses the next support at 0.00111, it will trigger the next bearish leg to 0.00102. Meanwhile, the RSI is showing that the bearish momentum is intensifying, indicating that Ripple is facing further correction against ETH. Ripple Eyes Drop Below $2 Before Recovery XRP price will likely drop below $2 first before it can make an upward recovery, according to the analysis shared by trader CrediBULL Crypto. $2 has often been seen as a crucial psychological support for the altcoin, but a drop below it might spark a surge in buying activity by traders accumulating the dip, and this will likely support an upswing. If Ripple drops to test the support level at $1.79, it may drive the next upward momentum that will aid a break of the critical $2.10 resistance level. Fliupping this level will then pave the way for an XRP breakout to $4. To sum up, the price of XRP has been under intense selling pressure due to a surge in long liquidations that have also caused the open interest to drop by over $500 billion in a week. As these bearish headwinds continue, Ripple is losing its edge against Ethereum, with a breakout only possible if it drops to test support below $2 before resuming an upward trend. Frequently Asked Questions (FAQs) XRP price may drop below $2 if there is a surge in sell-side pressure and it loses support at around $2.10. However, this drop may trigger accumulation that will push Ripple higher. Ripple’s open interest is dropping because of surging long liquidations. As long positions are closed, it causes sell-side pressure that impacts attempts at a recovery. The falling XRP/ETH ratio shows that Ethereum is showing more resilience compared to Ripple. This impedes on XRP’s ability to outperform ETH. ✓ Share: muthoni Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/markets/xrp-price-forecast-ripples-open-interest-sheds-520m-as-xrp-eth-hits-one-month-low/