XRP Tests $1.06 Support As Open Interest Drops

XRP is currently trading close to $1.07 as market participants scale back their positions. Open interest has dropped to a six month low, which shows that traders are taking a cautious approach right now. Price action is testing the $1.06 support level to see if buyers can defend it.

This cooling period comes after a busy stretch for the token. Market watchers are keeping a close eye on incoming exchange traded fund inflows and overall trading momentum to figure out the next big move. Lower open interest often means the market is clearing out excessive risk before the next trend begins.

Traders should watch the $1.06 level closely over the next few sessions. If that support holds firm, XRP might stabilize and build a base for a recovery. A break below that line could invite more selling pressure from short term traders.