Ripple (XRP) has experienced a decrease in key metrics, such as the number of transactions completed on its platform, in recent days. However, interest in XRP remains high in the derivatives market, with the potential for more buying activity. Despite market turbulence leading to major losses for several assets, XRP has maintained a relatively low decline. In the past 24 hours, sentiment has turned bullish, with XRP recording a 2.35% gain – its first positive rally compared to previous weeks and months of decline. Derivatives traders are optimistic about a rally, although the market remains uncertain about XRP’s next move.
On-chain insights suggest declining interest among market participants, as key metrics tracking activity and engagement have dropped significantly. In the past 24 hours, the number of transactions executed on the XRP platform has decreased from approximately 1.4 million to 657,000 completed transactions, indicating reduced network activity and waning interest. The number of unique accounts interacting with XRP has also dropped by more than half, from 19,018 to 8,039. This decline in market activity could potentially limit XRP’s potential for a near-term rally.
Despite the decline in key metrics, traders in the derivatives market are presenting a bullish narrative, with long (buy) contracts leading the way. Open Interest (OI) has been steadily increasing in both futures and options markets, with OI in the futures market rising by 2.15% to $3.18 billion, and in the options market by 108.93% to $242,000. The Funding Rate over the past 24 hours indicates that long traders have a significant portion of futures and options contracts. The Open Interest Weighted Funding Rate also remains positive and is rising quickly, standing at 0.0078. If sentiment remains strong, it could drive XRP’s price higher in the near future.
In terms of XRP’s price trajectory, a major obstacle lies at the resistance level of $2.1004, where bullish momentum may need to be strong enough to push the asset beyond this level to avoid a potential price drop. Possible support levels for a pullback include $1.923, $1.850, or $1.759, where XRP may stabilize before attempting a rebound. On the upside, a decisive break above the $2.233 resistance level could propel Ripple even higher on the chart. Traders and investors are closely watching these key levels to determine XRP’s next move in the market.
