XRP traders are piling into leverage longs positions despite the recent negative news about XRP and Ripple.
XRP (XRP) token has experienced a 20% decline in 2024 and it currently is approaching its lowest daily close since Oct. 18, 2023. Despite the challenging price performance, prominent traders at the OKX exchange heavily favor long (buy) leverage positions.
Surprisingly, funding costs for XRP futures have remained flat for the past month, raising questions about whether retail traders are predominantly betting on a price decline.
Some of XRP’s negative price performance can be attributed to adverse news surrounding Ripple, the company behind the token launch and the development of Ripple Ledger’s database. On Feb. 5, U.S. District Court Judge Sarah Netburn granted a motion from the U.S. Securities and Exchange Commission (SEC), requiring Ripple to produce financial statements, including contracts governing XRP token "institutional sales."
