XRP's $2.4B Open Interest Raises Fears of Forced Liquidation

XRP's open interest stands at $2.43 billion, dwarfing its spot volume of $361 million in the past 24 hours.

This has some market observers sounding alarm bells, as a forced liquidation of just 10% of this open interest would equate to about $243 million in notional exposure, roughly 67% of XRP's current daily spot volume.

The Federal Reserve's July meeting is set for July 28-29, with the policy statement landing on July 29 at 2 p.m. Eastern and a press conference scheduled for 2:30 p.m.

XRP currently trades near $1.06, down 2.9% over the past 24 hours and 8.6% in the past week, with its price map centered around four key zones, immediate support at $1.05, recovery territory between $1.09 and $1.11, and stronger confirmation above $1.15.

The outcome will largely depend on Bitcoin's reaction to the Fed decision, as a break below the $64,000 to $65,100 zone could lead to XRP testing its main failure line at $1.