Ripple[XRP] has been experiencing a continuous decline in Futures Open Interest (OI) since reaching an all-time high.
According to the on-chain analytics firm Coinglass, on the 18th of January 2025, XRP’s Futures OI was $7.62 billion.
However, at the time of writing, it has dropped to $3.02 billion, nearing the lowest level of 2025. This marked a decline of more than half from its all-time high.
This drop in OI is likely driven by the bearish outlook that the cryptocurrency market has been experiencing. The overall sentiment across the crypto landscape remains bearish, and cryptocurrencies like XRP often experience notable price fluctuations.
These fluctuations lead to the liquidation of open positions and trigger FOMO among traders betting on the altcoin. This may explain the significant drop in XRP’s OI.
Looking at the current market sentiment and XRP’s OI, it seems like traders are abandoning altcoin bets.
On-chain metrics’ mixed sentiment
However, all of this happened during a period when the market witnessed several major developments. This included the inauguration of pro-crypto U.S. President Donald Trump and multiple spot XRP Exchange-Traded Fund (ETF) filings by asset managers.
Despite these positive developments, short-term sentiment remains bearish, keeping intraday traders largely unaffected as they continue to follow the downward trend.
On the other hand, long-term holders, investors, and institutions are taking advantage of this continuous decline by making significant accumulations, as reported by Coinglass.
Data on Spot Inflows/Outflows revealed that exchanges witnessed a significant outflow of $187 million worth of XRP tokens in the past week.
This substantial outflow suggests potential accumulation and could create buying pressure and further upside momentum.
However, due to the prevailing market sentiment, this has not materialized.
XRP’s price analysis and upcoming levels
XRP was trading near $2.23, at press time, and has experienced a modest price drop of 0.85% in the past 24 hours.
But, during the same period, its trading volume declined by 35%, indicating lower participation from traders and investors compared to the previous day.
According to AMBCrypto’s price analysis, XRP appeared bearish as it recently fell below a crucial support level of $2.25 and closed a daily candle beneath it.
Following this breakdown, there is a strong possibility that the asset could decline by 13.5%, reaching the next support at $1.90 and the 200-day Exponential Moving Average (EMA).
