Precursor to XRP Plunge?…$2.4 Billion Drop in Open Interest Over Two Weeks

JOON HYOUNG LEE

Summary

XRP's open interest has reportedly decreased by approximately $2.4 billion over the past two weeks.
The price of XRP has been on a continuous downward trend since reaching its peak in the middle of this month.
Cointelegraph reported that there is a possibility that the price of XRP could fall below $2.6.

The open interest (OI) of XRP has dropped by nearly $2.4 billion (about ₩3.3 trillion) over the past two weeks.

Cointelegraph, citing data from the on-chain analytics firm Coinglass on the 30th (local time), reported, "XRP futures open interest hit an all-time high of $11.2 billion on the 18th of this month, but has since fallen to $8.8 billion." This means open interest shrank by about $2.4 billion in the last two weeks. Cointelegraph suggested, "This downtrend has led to speculation that (XRP) investors have shifted their attention to other assets."

*XRP open interest trend. Photo credit=Coinglass*

The price of XRP has been on a steady decline since mid-month. According to CoinMarketCap, the price of XRP surpassed $3.6 on the 18th, but as of today is trading in the low $3.1 range.

There are also concerns about further declines. Cointelegraph noted, "There are now fears that even ordinary volatility in the market could trigger a chain of forced liquidations," adding, "There is also speculation that XRP could fall below $2.6."

XRP