XRP price dips below $0.5 – A sign of more declines to come?

• XRP maintained the $0.4 price range despite the decline.
• Interest has fallen in the last 24 hours.

In recent days, Ripple (XRP) has experienced a downturn in its price, dimming the prospects of the anticipated rebound.

This decline has not only affected the immediate financial outlook for XRP, it has also led to a noticeable decrease in interest among investors and traders.

Ripple goes through a bend

AMBCrypto’s analysis of Ripple (XRP) revealed a concerning trend, with the cryptocurrency experiencing a series of declines over recent days.

According to the daily time frame chart, the downturn began around 3rd July, when XRP’s price dropped by 3.79% to approximately $0.46. 

The following day, on 4th July, the decline steepened, with a further drop of over 7%, bringing the price down to around $0.43. As of the latest data, XRP is trading with an additional decline of over 3%, maintaining its price at around $0.43.

Source: TradingView

The analysis also highlighted a sustained bearish trend in XRP’s Relative Strength Index (RSI), which currently stands at about 35.

An RSI below 40 typically indicates that an asset is in a bearish phase, suggesting that selling pressure has been dominating. This persistent bear trend in the RSI further confirms the negative momentum and could indicate continued downward pressure. 

Interest in XRP dwindles 

The analysis of XRP’s open interest on Coinglass indicated a significant decline in market participation. In the last 24 hours, its open interest has fallen below the $500 million mark, currently at around $467 million.

The open interest represents the total number of outstanding derivative contracts that have not been settled. This drop in open interest suggests decreased funds being committed to XRP derivatives.

It reflects a pullback in trading activity and waning investor confidence or interest in holding positions in XRP at this time.

Source: Coinglass

Despite the decline in open interest, the analysis of the weighted funding rate reveals that buyers have remained dominant. This could imply that while the overall market participation has decreased, those who remain active still lean towards buying rather than selling.

Read Ripple (XRP) Price Prediction 2024-25

Despite the reduced open interest, buyers’ dominance in the funding rate might indicate that there is still some underlying support for XRP.

The support is due to the remaining investors expecting a rebound or finding current price levels attractive enough to maintain or open new positions.