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XRP News Today: XRP's Open Interest Drops 10% as Price Falls 5.3%

Coin WorldWednesday, May 7, 2025 9:57 am ET

1min read

XRP's open interest experienced a significant drop, falling from 1.52 billion to 1.37 billion as the price of the cryptocurrency decreased by 5.3%. This decline in open interest indicates a reduction in speculative trading activity among traders. The drop in open interest coincided with a price decrease for XRP, which fell from $2.26 to $2.14 between April 28 and May 6. By May 7, the price of XRP had further declined to $2.13, resulting in a year-to-date return of just 2.58%.

Despite the bearish indicators, there are several factors suggesting that XRP prices could rebound. One key factor is the long/short ratio, which remains near 1-month highs. This ratio indicates that a significant number of traders are still bullish on XRP, despite the overall decline in open interest. Additionally, whales have continued to acquire XRP, purchasing 900 million tokens in April alone. This accumulation by large investors suggests confidence in the cryptocurrency's future performance.

Another significant factor is the ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC). The conclusion of this case, expected to occur in October at the earliest, could have a substantial impact on the market. The new set of regulations that the SEC is expected to issue in conjunction with the case's resolution could provide a market-wide boost, with XRP likely to benefit the most. Ripple Labs has emphasized the importance of this case in its Q1 2025 XRP markets report, highlighting the potential for a positive outcome that could drive XRP prices higher.

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