XRP Futures Show Bearish Sentiment Despite Strong Long-Term Holder Gains

Futures on XRP Indicate Bearish Sentiment Despite Long-Term Holder Gains

The XRP futures market, by Ripple, is displaying a growing outlook despite long-term investors experiencing returns lately. The negative interest and funding rates over the weeks indicate a sense of caution among traders, in the derivatives market.

According to data, from CoInglass reports a 33 percent decrease in XRP futures open interest from February 1 to March 18 is observed which indicates engagement amid a decline in the cryptocurrency market as a whole with negative funding rates indicating an increase, in short positions signaling trader expectations of further price drops.

So XRP has demonstrated resilience compared to certain leading cryptocurrencies. Although Bitcoin, Ethereum, and Solana experienced declines over the week XRP saw an increase of 3%. According to Santiment data, it is evident that long-time investors continue to see profits with a gain of 233%.

Currently, XRP is testing the support level at the end of a channel which is an important technical point to watch out for. If it stays above this level it could signal a shift, towards momentum. Face resistance at $272 is the next key hurdle. On the side, if it falls below $200 it might lead to a drop, in prices down to $135.

Traders are keeping an eye out for updates, in the SEC versus Ripple case as it could have an effect on the price of XRP. Looking at reports indicating a settlement, in the works that could influence market sentiment.