XRP drops 9% due to short-selling pressure, ETF trading volume and TVL decline suppress rebound expectations

Source: TokenPost Original Title: XRP, 급락에 9% 하락…ETF·TVL 감소로 반등 기대도 ‘흔들’ Original Link:

Market Overview

XRP is facing strong selling pressure, with short positions dominating the derivatives market. In the spot market, trading volume and deposit amounts are also continuously decreasing, further reducing the likelihood of a price rebound.

Price Trends and Short Pressure

Recently, XRP encountered resistance at $2.18 and then dropped sharply, falling 9% over two days. After breaking below the psychological support level of $2, the financing rate for short positions in the derivatives market hit a nearly two-month high. This indicates that borrowing XRP to short is becoming more expensive, reflecting strong selling pressure in the market.

Decline in Market Activity

Open interest in the derivatives market remains stagnant, with insufficient capital inflow. This suggests that few new traders are entering the market, and both buyers and sellers lack new participants, indicating a clear decline in market vitality.

Ecosystem Enthusiasm Diminishing

The overall enthusiasm for the XRP ecosystem is also waning. Trading volume of the US XRP spot ETF is decreasing, and the total locked assets (TVL) in the XRP Ledger are also declining, showing signs of ecosystem contraction. This indicates that long-term investors and developers are paying less attention, further reducing expectations for a future price rebound.

Deep Signal Analysis

This weakness can be viewed as a signal that goes beyond short-term technical adjustments. A decline in attention in both the derivatives and spot markets reflects decreasing attractiveness of XRP. To achieve a strong rebound, external stimuli such as a recovery in ETF demand or increased network usage may be necessary.

Key Indicator Interpretation

• Funding Rate(Funding Rate): The fee concept used in futures markets to balance the supply and demand between long and short positions
• TVL(Total Locked Value): The total amount of assets locked in blockchain smart contracts, reflecting the growth and trustworthiness of the network
• Open Interest(Open Interest): The total number of unsettled futures contracts, indicating market participant engagement