XRP has experienced a significant decline, dropping 15% from $3.66 on July 18, which corresponded with a $2.4 billion decrease in XRP futures open interest. This metric indicates the total value of outstanding leveraged positions and reflects traders' ongoing concerns over market volatility potentially leading to further price drops. Despite the recent selloff, open interest remains elevated in USD terms, suggesting that some traders are still engaged in leverage trading. The current demand for bullish leverage has not surged, implying reduced risk of cascading liquidations under normal market conditions. Recent optimism surrounding XRP is partly fueled by speculation about potential approval for a spot exchange-traded fund (ETF) in the U.S. However, on-chain activities and decentralized finance applications on the XRP Ledger have seen limited adoption, raising questions about sustained price growth above $3. While neutral market conditions are present, clear signs of increased demand for the XRP Ledger are necessary for establishing a consistent bullish trend above this price level.

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