Ripple (XRP) Price Could Drop 18% as Trading Activity Declines

Ripple's XRP has seen a drop in trading activity over the past 24 hours. This has resulted in a 2% drop in price and a 12% drop in volume.

If the coin breaks the rising trendline it has held since September 6, it could face a further 18% drop.

Also Read: Ripple (XRP) Heads for $1 as Monthly Chart Reveals Bullish Pattern

The withdrawal of Derivative traders

Ripple’s price decline over the past 24 hours has also affected its Derivative market. According to data from Coinglass, XRP Derivative volume has dropped 22% over the period. A drop in volume indicates fewer traders entering or exiting positions, which reduces liquidation. Low liquidation can make it more difficult for market participants to execute trades at the desired price.

Additionally, XRP ’s open interest — which represents the total number of open Futures Contract — fell 2% to $634 million. Generally, this indicates waning interest in the asset or a lack of confidence in the current trend.

Interestingly, despite some traders closing their contracts, the rest of the market continues to open Longing positions, as evidenced by XRP’s positive funding rate. At the time of writing, the Token ’s funding rate is 0.0022%. When an asset’s funding rate is positive, there is a higher demand for Longing positions than Short positions.

XRP Price Prediction : Why Bulls Must Defend the Uptrend Line

XRP is trading at $0.57, attempting to break below its rising trendline. If the selling pressure in the market increases further, buyers will not be able to defend this level, causing the coin to seek support at $0.45. This would represent an 18% drop from its current value.

However, if XRP reverses the current trend and rises, it will retest the support at $0.60. If this move is successful, the uptrend is confirmed and the Token price will increase to $0.65.

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