XRP Is Flashing Two Contradictory Signals: Which One Should Ripple Traders Trust?

The past few weeks (and months, and almost a year) haven’t been kind to the popular cross-border token, which dipped below the coveted psychological level of $1.00 at least twice for the first time in nearly two years.

Naturally, this has deteriorated investors’ sentiment, but two sets of data paint a particularly interesting picture of what might come next.

Nervous XRP Traders

Data provided by Santiment Intelligence indicated that the negative commentaries online surrounding XRP have skyrocketed in the past week as the asset failed to recover from its drop to and slightly below $1.00. In fact, crowd mood across the most popular social media platforms has reached its lowest level in three months.

Meanwhile, XRP Ledger developer Bird highlighted another potentially concerning development. XRP’s open interest is approaching levels seen around the infamous October 10 liquidation event in which over $19 billion worth of leveraged positions were wiped out in less than a day.

Open interest represents the total value of outstanding derivatives positions. In general, rising figures indicate traders are deploying more capital and leverage into the market. This could be particularly threatening if the underlying asset is already quite volatile, which hasn’t been the case lately, unlike the October 10 massacre.

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