Investors are concerned about the 51% drop in open interest for popular cryptocurrencies, including Dogecoin, Solana, and Ripple, which could lead to price declines.
The decline in interest for DOGE and Solana suggests a decrease in trading activity and a potential loss of investor confidence. Solana also saw a sharp 95% reduction in its monthly transaction volume.
For XRP, the situation is different. Recent whale activity, including the transfer of 29 million XRP tokens from Bitstamp to an unknown wallet, could indicate potential price swings. However, relying solely on one event to predict market movement is risky.
The ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission over XRP’s status as a security adds to the uncertainty.
Nevertheless, there are still chances for a reversal, especially for XRP.