CryptoQuant: XRP will fall by 17%

Despite the recent surge in the value of the Ripple token XRP $2.57 XRP -4.88% Market capitalization $147 billion VOL. 24 hours $1.74 billion , analysts warn of possible sharp fluctuations in its price. In particular, due to the growing interest in derivatives and the risks associated with the use of leverage in the cryptocurrency market.

The cryptocurrency market is at a critical juncture due to growing regulatory pressures and changing market dynamics.

Analysts point to potential volatility around the XRP token following a recent surge in its price to levels not seen since 2021.

Particularly worrisome is the sharp increase in open positions on XRP, which has risen by 37% over the past 24 hours.

Such changes indicate that traders are actively using derivatives to benefit from the price increase, but this increases the likelihood of sudden sales.

According to CryptoQuant analyst Maarten Ragterschot, the last similar cases ended in a significant price drop, in some cases up to 17%. Traders are advised to closely monitor market conditions and manage risks accordingly.

Despite the optimism surrounding Ripple’s partnerships, the filing of an ETF for XRP, and rumors of Elon Musk’s possible involvement in Ripple investments, experts are urging caution about future volatility.