XRP has remained stagnant for an extended period, lingering below important resistance levels for more than a month without any indications of a potential surge.
The lack of momentum upwards has left traders disappointed and weakened overall market trust.
Recent figures paint a dim scene: Over the past 48 hours, XRP Futures Open Interest has plummeted by more than $1 billion, underlining a significant decrease in investor confidence. What is causing this sudden shift in market sentiment?
XRP Futures Open Interest Plunges by $1 Billion
XRP: Heightened Uncertainty Among Investors?
The XRP Price DAA Divergence chart highlighted a critical disparity between price movement and network activity.
During late November’s surge in XRP’s price, DAA divergence took a sharp negative turn, indicating that network involvement did not rise in tandem with the price hike.
This discrepancy implies that the price spike was primarily fueled by speculative trading rather than genuine network expansion or adoption for utility purposes.
Even after the price surge, DAA divergence stayed negative, showcasing lingering doubt among on-chain participants.
In the absence of an increase in active addresses, the ability of the price to maintain its momentum could be at risk.
The lack of robust on-chain activity, despite the recent price jump, brings up concerns regarding the sustainability of any short-term recovery and may keep XRP trapped in a state of consolidation or decline unless fundamental network metrics improve.