Amidst the largely positive narrative around the media regarding the arrival of spot ETFs and the green signal in the case with the SEC, $XRP is witnessing a price decline in the charts, with $80 million liquations between February 23rd and 26th. This downtrend aligns with the entire cryptocurrency market scenario that marked the wiping of 230 billion dollars from the market capitalization.
The aggregate open interest of XRP futures witnessed an 8% decline from the previous week, dropping to 1.33 billion. According to price prediction experts, the coin will likely hodl the support near $2.15 and bounce back after the conclusion of the SEC lawsuit. However, others say it will drain the market cap with the appearance of an unprepared bear phase.
The Reasons for XRP’s Open Interest Drops
Usually, funding rates play a key role in assessing the market sentiment. When the rates are positive, it suggests that the token has increased the buying interest. If funding rates are negative, it indicates a bearish scenario. In the case of XRP, the recent data suggests that investors are not interested in buying it.
The last time XRP showcased exponential demand was on December 4th, 2024, which ignited an incredible bull run. However, this later turned into a correction due to high selling pressure. We can see a similar pressure in the current scenario, where the open interest drops detached new investors from the coin.
A major reason for this drastic drop is the focus shift of XRP investors into other cryptocurrencies. Other reasons include the correction in the whole crypto market. The recent happenings in the crypto realm, the Bybit hack, the Trump tariff issue, and the LIBRA rug pull ignited the correction. In the case of XRP, the delays in the SEC verdict also caused it to plunge.
SEC Delays the Dismissal of Ripple’s Case
While the new SEC administration has dropped various crypto-related cases, it is delaying the Ripple lawsuit due to its complexities. In the past week, the SEC closed several cases, including the long-running lawsuit against Coinbase Exchange, legal action against OpenSea, and the investigation of Robinhood Crypto.
As a years-long case that gained significant attention from the mainstream media, ending it isn’t that easy for the Securities and Exchange Commission (SEC). While a judge rendered the final verdict of the case before the resignation of Gary Gensler, the SEC filed an appeal, creating further delays.�
Current Market Scenario of XRP
At present, XRP has a market cap of $128.72 billion and a price of $2.22 per coin. According to the Fear and Greed Index, the current sentiment is toward extreme fear. The volatility score is 9.12% (extremely high). The chart data have made investors skeptical about investing in the coin. However, it has shown 15 green candles in the past 30 days and outperformed 91% of the top 100 crypto assets.
Also Read: Bitcoin Falls Under $89K, Crypto Market Loses $50 Billion
Final Thoughts: When Will XRP Rebound?
Despite the short-term corrections, the XRP is expected to witness exponential growth in the coming decade. It has the potential to become a global payments network that can be adopted by institutions such as governments and banks. It will be very useful to central banks in streamlining identity systems.
Various long-term XRP hodlers believe that XRP will outperform BTC and ETH in the coming years. After the dismissal of the SEC case and the arrival of XRP ETFs, it will definitely increase the market cap. However, try to do your own research if you plan to invest, before blindly making any decisions.
