XRP faced a significant 25.7% correction by February 6, but the $2.30 support level displayed strong buying interest. A subsequent 8% gain on February 7 brought XRP to $2.50, yet this trend wasn't followed by professional traders, who reduced their leveraged positions, leading to a 37% drop in XRP futures open interest since January 15. While a reduction in contracts does not exclusively signal bearish market sentiment, the lack of institutional engagement typically affects liquidity and trading capital. Notably, the annualized futures premium for XRP has returned to a bullish 10% after briefly dipping post-flash crash on February 3, despite XRP's current price being 25.5% below its record high. However, the funding rate for perpetual contracts is low, indicating hesitation among retail traders. Furthermore, claims around XRP's adoption by traditional finance lack credible evidence, raising concerns about its speculative nature. The ongoing SEC lawsuit regarding XRP's classification remains critical, but its outcome is unlikely to significantly affect XRP's trajectory.

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