- XRP’s network growth sharply declines, signaling weakening user adoption trend
- Derivatives market shows retreat as volume drops 35% and open interest slips
- Options open interest rises 8% despite dip in volume, hinting at strategic setups
Ripple’s XRP is encountering a pivotal moment in its current market cycle, with recent movements raising concern among investors. After riding a bullish wave over the past two weeks, XRP’s price slid to $2.47, down from its Wednesday peak of $2.65. This marks a 5.57% dip in 24 hours, despite an overall 11.34% gain over the past week.
Network Activity Weakens Amid Price Pullback
XRP had recently bounced from a solid support zone near $2.12, climbing steadily on optimism sweeping across the digital asset sector. That momentum, however, is now under pressure. One of the key warning signs is a sharp drop in XRP’s network growth, which fell drastically to 1,170 on May 14.
This decline came immediately after the recent price peak, potentially signaling waning user activity and a slowdown in new adoption. Historically, spikes in network growth have preceded short-term rallies, making the current drop particularly notable.
According to Coinglass data, XRP’s long/short ratio is now at 0.8723, indicating a higher number of traders betting on a price decline. This bearish tilt is further confirmed by liquidation data showing over $12 million in long positions being wiped out. Short positions, in contrast, accounted for only about $657,000 in liquidations, reflecting defensive sentiment among market participants.
Derivatives Market Softens, But Options Interest Grows
In parallel with falling price momentum, derivatives market indicators are flashing caution. Total trading volume has plunged by more than 35%, now sitting at $7.07 billion. Open interest has also contracted by 8.33%, settling at $5.19 billion.
Even options trading volume has dipped by over 11%, with just $1,490 traded in the past 24 hours. Despite this slowdown, options open interest has unexpectedly grown by 8.01% to $1.04 million, suggesting strategic positioning ahead of potential price swings.
Technically, the MACD remains positive but shows signs of convergence, hinting at a fading bullish trend. RSI stands near 59.86, still in bullish territory but shy of overbought levels.
