Attention in crypto money markets has been translated into popular Altcoin XRP. While the price of XRP fluctuates in recent days, there was a harsh decline in open positions in the futures. This development worries XRP investors. However, the effect of these movements in the futures market on market sensitivity gives mixed signals.
Hard decline in XRP futures transactions
XRP’s total term transaction open positions have decreased by 37 %since January 15th. This shows that professional traders significantly reduce leverage positions. However, this decrease should not be interpreted as a direct negative signal. Since both Long (purchase) and shorts (sale) positions match in the futures markets, the number of diminishing positions may indicate that only the market interest has decreased.
In addition, the XRP price was recovered after testing the support level of $ 2.30 several times. The strong buyer interest of the price from this level suggests that investors may have a positive perspective in the short term.
What should investors do?
When the XRP’s term transaction premium is examined, it is seen that the annualized ratio returns to 10 %. This rate indicates that the market can gain a positive momentum again. However, another remarkable data is that XRP’s funding rate in continuous term transactions decreases to 0.2 %. This shows that retail investors are more cautious.
Experts point out that XRP’s price movements are often shaped by news and rumors. Ripple’s legal processes and possible government decisions are among the important factors affecting the XRP price. In this period, investors should carefully analyze market data and avoid sudden decisions.
Future of XRP
Although the XRP is likely to re -test the $ 3 level, a strong basic change in this direction has not yet been observed. The fact that Ripple has a more friendly environment in court processes may be a positive development for XRP. However, this situation is not expected to have a permanent impact on the price directly.
Nevertheless, the XRP continues to be an important asset that must be carefully monitored under wavy market conditions. However, it is very important for investors to invest in the market as aware of the risks.
