XRP Falls 9% as Traders Close Positions Amid Market Uncertainty

XRP dropped 9% over the past 24 hours. The decline mirrors a broader cryptocurrency market downtrend. This comes despite Donald Trump's newly created Strategic Bitcoin Reserve and the recently concluded White House Crypto Summit.

Bullish sentiment for XRP has weakened considerably. Market volatility has increased. Analysts suggest the token may experience further price declines in the near term.

XRP's futures market shows traders exiting positions. Open interest has fallen to $3.39 billion at press time. This represents a 3% drop during the same period when the price declined.

Open interest measures outstanding derivative contracts that remain unsettled. When both open interest and price fall simultaneously, it indicates declining market participation. This suggests traders are closing positions without opening new ones. Such behavior typically signals weakening momentum.

"This trend signals that XRP traders are closing positions without opening new ones, indicating weakening market momentum and uncertainty in its price direction," noted one market analyst.

XRP's funding rate has remained negative for two consecutive days. The current rate sits at -0.0040%. Negative funding rates occur when short traders pay long traders. This indicates higher demand for short positions and reinforces bearish market sentiment.

Technical indicators further support the bearish outlook. XRP's daily chart shows a negative Balance of Power (BoP) at -0.38. This indicator measures the strength of buying versus selling pressure. The negative reading confirms sellers currently control the market.

If selling pressure intensifies, XRP could break below the $2.13 support level. This would potentially trigger a drop toward $1.47. However, a shift to bullish sentiment could push the price past $2.93. This would put XRP on track to challenge its all-time high of $3.40, last reached on January 16.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.