XRP Slumps 9% Amid Broader Crypto Downturn and Weakening Bullish Sentiment
XRP has dropped by 9% over the past 24 hours in tandem with the broader cryptocurrency market's downturn. This decline comes despite recent developments such as Donald Trump's Strategic Bitcoin Reserve and the White House Crypto Summit.
Bullish sentiment for XRP has weakened significantly, while market volatility has increased. Analysts suggest that the token may experience further price declines in the near term.
The futures market shows traders exiting positions, with open interest falling to $3.39 billion at press time, a 3% drop during this period. Open interest measures outstanding derivative contracts yet to be settled, and when both open interest and price fall simultaneously, it indicates declining market participation.
A negative funding rate has persisted for two consecutive days, with the current rate sitting at -0.0040%. Negative funding rates occur when short traders pay long traders, indicating higher demand for short positions and reinforcing bearish market sentiment.