XRP has logged a notable decrease in its futures open interest as of Friday, March 20, as momentum begins to fade after the recent rally that pushed the price past its monthly high.
Over the last 24 hours, data from CoinGlass shows that the XRP derivatives market has remained negative as XRP’s open interest declines by over 5% within one day.
Following this decline in the metric, XRP futures traders appear to be increasingly withdrawing existing active contracts as the amount of XRP committed to the derivatives market has dropped to 1.73 billion XRP.
XRP recovery stalls
Per XRP’s current trading price, the total amount of XRP bets that are yet to be settled is worth about $2.49 billion, suggesting that XRP’s current price dip might remain for longer.
The plunge in the XRP open interest has come amid a weak price move, as XRP was seen trading in red territory over the same period as the negative futures trend.
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While the drop in XRP open interest coincides with a drop in its price, it appears that traders are voluntarily closing positions following efforts to reduce possible leverage risks.
As of the time of writing, XRP is trading at $1.43 while projecting a mild decrease of 0.75% in its price over the last 24 hours.
Despite the weak momentum and the XRP trading volume plunging as low as 22.84%, market watchers are optimistic that the asset will resume its rally soon and reclaim its long-lost $2 mark.
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