TLDR
- Volatility Shares submitted a 5X leveraged XRP ETF application, expanding beyond its existing 2X product with $781 million in crypto assets
- XRP fell 13% over seven days but holds $6 billion daily volume while trading between $2 and $3.65
- Futures open interest collapsed from $9 billion to $4.05 billion after $610 million in liquidations hit the market
- Technical indicators show a potential death cross forming as 50-day and 200-day moving averages converge
- Spot trading volume decreased from $23 billion to $6.8 billion as market activity cooled following recent volatility
Volatility Shares filed paperwork with regulators for a 5X leveraged XRP exchange-traded fund. The firm already manages a 2X XRP ETF and holds $781 million in total crypto assets including Solana products.
The new 5X product would give investors five times the daily price movement of XRP. Leveraged ETFs use futures contracts and options to amplify returns through borrowed capital. This filing comes as institutional crypto products continue expanding across Wall Street.
XRP trades at $2.40 after declining 13% in the past week. The token maintains strong liquidity with $6 billion changing hands daily. This volume represents 4% of XRP’s total circulating supply.
The price range between $2 and $3.65 has held for several weeks. Other major cryptocurrencies like Bitcoin and Ethereum reached new highs while XRP consolidated. Trading activity remains elevated despite the recent price decline.
Death Cross Pattern Takes Shape
Technical indicators are flashing warning signs for XRP holders. The 50-day exponential moving average is approaching the 200-day exponential moving average from above. When these lines cross, it creates a death cross pattern that often precedes further downside.
The Relative Strength Index dropped toward oversold levels on daily charts. The MACD indicator fell below the zero line last week. One market analyst projected a potential drop to $2, which sits 16% below current prices.
XRP crashed to $1.77 last Friday during a sharp market correction. The token lost 37% in 24 hours before bouncing back to $2.6425. Current prices rest near technical support at $2.40 based on charting tools.
Trading Metrics Show Weakening Demand
XRP futures open interest fell to $4.05 billion from $9 billion before last week’s crash. Open interest tracks the total value of active futures contracts. The steep decline indicates traders are exiting positions rather than opening new ones.
Last Friday saw $610 million in XRP liquidations, the highest on record. Liquidations occur when leveraged positions close automatically due to insufficient margin. The event impacted both bullish and bearish bets.
Spot market volume dropped from $23 billion to $6.8 billion in recent trading sessions. Lower volume suggests reduced participation from buyers and sellers. The decline followed last week’s volatile price swings.
The RSI indicator crossed above its 14-day moving average on some timeframes. This could signal a potential bounce if buying pressure returns. XRP needs to break above $2.6425 to invalidate the bearish outlook.
Regulatory Developments on Horizon
The SEC may approve spot XRP ETFs in coming months. Ripple’s RLUSD stablecoin is approaching $1 billion in assets. The company continues building its payment infrastructure and blockchain solutions. These developments could influence XRP’s price trajectory as the year progresses.
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