XRP Extends Decline as Derivatives Come Under Pressure

Ripple's XRP token is facing intensifying headwinds as it trades at $1.37 on Tuesday, with its derivatives coming under pressure due to a decline in perpetual futures Open Interest.

The Open Interest, which measures the total value of outstanding contracts, has fallen to 2.29 billion XRP, down from a peak of 2.78 billion in August. This decrease in demand is contributing to a bearish sentiment among investors.

Despite this, XRP spot Exchange-Traded Funds (ETFs) have seen steady inflows, with nearly $6 million added on Monday, bringing cumulative inflows to $1.66 billion.

The technical analysis of XRP's price action suggests that it remains vulnerable to further downside, with a 200-day Exponential Moving Average (EMA) providing immediate support at the $1.35 level.