XRP News Today: XRP Falls 15% Despite ETF Hype as Open Interest Dips 21% and On-Chain Activity Lags

XRP futures data indicates a neutral market sentiment as the cryptocurrency has dropped 15% from $3.66, according to COINOTAG analysis. Despite the decline, open interest in XRP futures remains elevated at $8.8 billion, a 21% decrease from its $11.2 billion peak on July 18. This suggests sustained leveraged trading activity, with traders maintaining cautious optimism amid volatility. The $2.4 billion reduction in open interest since mid-July reflects some liquidations, yet the current level is 48% higher than one month ago in XRP terms, signaling ongoing interest without panic selling [1].

On-chain activity on the XRP Ledger remains low, with only $134 million in tokenized real-world assets and minimal decentralized exchange (DEX) volume. This lags behind competitors like Avalanche ($190 million in tokenized assets) and Sui ($13.3 billion in 30-day DEX volume), raising questions about XRP’s ability to sustain gains above the $3 resistance level. Analysts note that robust on-chain adoption is typically a prerequisite for long-term bullish momentum in crypto markets [2].

Speculation surrounding a potential U.S. spot exchange-traded fund (ETF) has fueled short-term optimism, particularly following Ether (ETH) ETFs surpassing $18 billion in assets. However, the market has also been impacted by unverified rumors of a Ripple partnership with SWIFT and major banks, which lack credible evidence but have drawn trader attention. These false narratives, amplified on social media, underscore the fragmented nature of market sentiment [3].

Traders’ cautious behavior is further reflected in XRP futures premiums. Monthly contracts have traded at a 6% to 8% annualized premium over spot prices, consistent with neutral positioning. Notably, XRP’s brief surge above $3.60 in early July did not trigger increased demand for bullish leverage, reducing the risk of cascading liquidations during routine price swings. This suggests whales and market makers are monitoring developments without committing to aggressive long-term bets [4].

The interplay of factors highlights a delicate balance: while ETF speculation offers upside potential, low on-chain activity and misinformation temper expectations. Traders are advised to prioritize credible data, such as network adoption metrics, over speculative narratives. The XRP Ledger’s limited role in decentralized finance (DeFi) remains a critical barrier to sustained price gains, as adoption drives utility and demand in the crypto ecosystem.

Source: [1] title1 (https://en.coinotag.com/xrp-futures-show-neutral-sentiment-amid-price-drop-and-etf-speculation-raising-caution-over-sustained-gains/)