TLDR

• Volatility Shares filed for a 5X leveraged XRP ETF after already managing a 2X version, with $781 million in total assets under management across crypto products
• XRP dropped 13% over the past week but maintains $6 billion in daily trading volume while holding between $2 and $3.65 price range
• One analyst predicts XRP could fall to $2 as a death cross pattern forms with the 50-day and 200-day moving averages nearing crossover
• XRP futures open interest dropped from $9 billion to $4.05 billion following $610 million in liquidations last Friday
• Spot market volume fell from $23 billion to $6.8 billion as demand decreased following recent market volatility

Volatility Shares submitted paperwork for a 5X leveraged XRP exchange-traded fund. The asset manager already operates a 2X XRP ETF and manages $781 million across its crypto products including Solana.

Leveraged ETFs work by using futures contracts and options to multiply returns. Investors can gain larger exposure through borrowed capital in margin accounts. The 5X product would give traders five times the daily return of XRP’s price movements.

XRP currently trades between $2 and $3.65 after dropping 13% in the past week. Daily trading volume sits at $6 billion, equal to 4% of the circulating supply. The token reached $2.3980 recently, down 35% from its year-to-date high.

Market Activity Shows Mixed Signals

The token maintains high trading activity despite the price decline. Bitcoin and Ethereum posted new all-time highs while XRP consolidated in its current range. The RSI indicator crossed above its 14-day moving average on some timeframes.

XRP hit a low of $1.77 last Friday during a market-wide drop. The token fell 37% in a single day before recovering to $2.6425. It now trades near the $2.40 level, which matches a support line on technical charts.

The 50-day and 200-day exponential moving averages are approaching each other. When the shorter average crosses below the longer one, it forms a death cross pattern. This formation typically signals more downside ahead.

Trading Metrics Point to Reduced Interest

XRP futures open interest decreased to $4.05 billion from $9 billion before last Friday’s crash. Open interest measures the total value of active futures contracts. Lower numbers suggest traders are closing positions rather than opening new ones.

Liquidations hit $610 million last Friday, the highest amount recorded for XRP. Liquidations happen when leveraged positions are automatically closed due to insufficient margin. Both long and short positions were affected.

Spot market volume dropped from $23 billion to $6.8 billion in recent days. Lower volume indicates fewer buyers and sellers are active in the market. The decline followed the sharp price movements from last week.

The Relative Strength Index moved closer to oversold territory on daily charts. The MACD indicator crossed below the zero line, another bearish technical signal. One analyst set a price target of $2, about 16% below current levels.

XRP could face approval for spot ETFs from the SEC in coming months. Ripple’s RLUSD stablecoin is approaching $1 billion in total assets. The company continues to expand its payment network and blockchain services.

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