XRP volatility continues to rise after falling from a 24-hour high of $2.72 to a low of $2,361. As the price fell to this low, XRP futures open interest (OI) also plummeted by more than 12% over the same period, according to CoinGlass. Despite this drop in value, XRP OI appears to be returning to its peak, with traders totaling over 1.6 billion XRP.
Big money bets are good for XRP
At the time of writing, XRP fell 4.56% to $2.57. Even though trading volume topped $34 billion, the 34% decline in volume proves a change in sentiment from the 24-hour price point.
The XRP price deviated from its bullish path when the South Korean market, a source of retail liquidity for the coin, closed due to the temporary declaration of martial law. For a coin approaching its all-time high (ATH) above $3.84, the asset price was subject to a forced reset.
With retail traders temporarily squeezed, futures traders are stepping in to support sentiment. According to the XRP/USDT 1D chart, the RSI of 87 proves that the bullish hype around XRP has not yet dissipated.
XRP whales have also helped maintain buying sentiment as the ecosystem takes a watchful approach.
Focus on functionality
Since the price of XRP is below where it started the week, its overall utility is gradually changing.
With certain updates to the XRP Ledger protocol, applications that can drive demand for the coin are getting the right boost. Ripple Labs is also in the final stages of launching its stablecoin RLUSD.
This stablecoin will provide XRP with more liquidity, which will further help stimulate trading in a specific niche. The company is in the final stages of obtaining a license in New York, which could bring the launch of the coin closer.
