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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/altcoin/xrps-open-interest-drops-by-nearly-40-since-market-crash-is-xrp-price-heading-below-0-50/">XRP’s Open Interest Drops By Nearly 40% Since Market Crash! Is XRP Price Heading Below $0.50?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The crypto market’s current bearish sentiment is impacting even tokens with solid fundamentals, as traders shift their focus from long-term holding to selling on short-term price fluctuations. Notably, XRP, one of the notable tokens by market cap, has seen <a href="https://coinpedia.org/altcoin/xrp-price-rally-short-lived-as-bearish-market-sentiment-trumps-ripple-labs-sec-victory/" rel="noopener noreferrer nofollow">a reversal</a> of its gains following Ripple Labs’ pivotal court victory against the SEC in July. The recent market crash, combined with the SEC’s decision to appeal the court’s ruling, brought a surge in selling activity. This raises concerns about XRP potentially falling below the significant $0.5 level.</p> 
<h2 id="traders-show-less-interest-in-xrps-future-positions" data-name="traders-show-less-interest-in-xrps-future-positions" class="wp-block-heading">Traders Show Less Interest In XRP’s Future Positions&nbsp;</h2> 
<p>As XRP failed to <a href="https://coinpedia.org/news/top-reasons-why-xrp-is-about-to-become-way-bigger-than-everyone-thinks/" rel="noopener noreferrer nofollow">meet traders’ expectations</a>, there has been a significant decline in XRP’s future positions. On-chain data reveals a continuous decrease in XRP’s open interest over the past six days. The open interest metric fell from $700 million on August 17 to $440 million, as of today.&nbsp;</p> 
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 <img decoding="async" src="https://lh5.googleusercontent.com/-ytM4N-_1R8CiX9n8ytIpbswiGgkaz56P7N1Y5pHXzCyYpIv4KoNayxxggjbPTG9raOPzITrS7dpuPK-xS2KA9yKOBqtwsBOWJ2zOj01kiCx452pU1i9t2FMQ78mdaXKl6U39qsRvJxeBypwdBHpCfA" alt=""> 
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<p>Declining open interest is bearish for XRP because it indicates a decrease in the number of active contracts or positions in the market. A drop in open interest suggests that traders are closing their positions, which can be concluded as a lack of confidence in the token’s future price movement.&nbsp;</p> 
<p>In the context of XRP, a falling open interest might imply that traders are becoming less interested or optimistic about its potential upside, signaling a bearish sentiment.&nbsp;</p> 
<p>However, XRP’s RSI level brings bullish confidence among holders. As seen on the daily price chart, the RSI level has formed a ‘V’ shape and currently trades near the oversold region at level 33. This suggests a possible recovery or a temporary uptick in the near future for XRP’s price.&nbsp;</p> 
<h2 id="will-xrp-decline-below-0-5" data-name="will-xrp-decline-below-0-5" class="wp-block-heading">Will XRP Decline Below $0.5?</h2> 
<p>Despite strong selling pressure from bears, buyers successfully rebounded the XRP price above the 20-day EMA trend line at $0.5232. Currently, there’s an intense battle between bulls and bears to trigger a clear move. As of writing, XRP price trades at $0.523, surging over 1.7% in the last 24 hours.&nbsp;&nbsp;</p> 
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 <img decoding="async" src="https://lh5.googleusercontent.com/T7rm8lLumJVHNFnU1aPNbBE76jxmZBu-TnPmyD5Mwy8vFvIEdA3c2055Hi5qBlKSD04Lz6_1PwFx37kuPJHVwOPnowKUFNrvD2s_wiAhymIffaoblmgpx0BwzLmrAYiFf_9jMxMscfDAMAcEy9xXacM" alt=""> 
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<p>The bearish forces seem to be halting the upward momentum around $0.56, suggesting a rising negative sentiment as traders opt to sell during minor upward rallies. If the price declines and drops below its current consolidation near $0.52, it will suggest that the XRP price might hover between $0.45 and $0.49 for some time.</p> 
<p>On the 4-hour price chart, the stable EMA trend lines and the RSI surged above the midline with a current level of 52, hinting at a bullish comeback. A clear sign of bullish momentum would be a sustained break above $0.58, indicating a potential decrease in bearish intensity. This could push the price to test its resistance near the upward trend line of $0.64.</p>

XRP’s Open Interest Drops By Nearly 40% Since Market Crash! Is XRP Price Heading Below $0.50?

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