XRP has seen a significant correction of 25.7% in the seven days ending February 6, but strong buying interest is noted at the $2.30 support level. Despite an 8% gain on February 7, which brought the price to $2.50, professional traders have cut back on leveraged positions, leading to a 37% drop in total XRP futures open interest since January 15. This decrease isn't strictly bearish, as institutional investor interest tends to boost liquidity. Notably, the annualized futures premium has recovered to a bullish 10%. However, retail trading sentiment appears weak, reflected by a current funding rate of just 0.2% per month, a significant drop from previously higher levels. XRP's speculative nature remains evident, with claims of adoption in traditional finance lacking solid evidence. The ongoing SEC lawsuit regarding XRP's classification continues to be a critical factor, though its outcome is not expected to dramatically affect XRP's trajectory.

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