XRP Open Interest Falls to Its Lowest Level Since May 2025, Analysts See Signs of Potential Market Rebound

Recent data indicates that the open interest of XRP derivative contracts has dropped to its lowest point since May 2025. Analysts interpret this trend as a potentially important technical signal suggesting a phase of re-accumulation or an upcoming bullish reversal for the cryptocurrency.

Market Movement Details

According to a report by Times Tabloid, XRP’s open interest across major exchanges, including Binance, has fallen to around US$550 million, a level last seen in May 2025. Previously, open interest had surged to a peak of approximately US$3 billion in early October before plunging by more than 60% to around US$1 billion by mid-month.

Interestingly, despite this significant decline in leverage, XRP’s price has remained stable at around US$2.60. This contrasts with earlier periods when rising leverage triggered sharp, short-term rallies.

Significance for the XRP Market

1. Leverage Flush Phase
   A major decline in open interest typically signals the liquidation of highly leveraged positions in futures or perpetual contracts. This process often leaves the market “cleaner” and less influenced by speculative pressure.

2. Stronger Spot Accumulation
   With leverage decreasing but prices holding steady, analysts suggest that the market is currently dominated by spot buyers and long-term holders. This behavior often lays the foundation for a more sustainable rally.

3. Healthier Breakout Potential
   When open interest remains low, liquidity disruption risks are reduced. Therefore, if fresh capital enters the market—whether from institutional investors, new regulations, or ETF product launches the next price surge could occur with less selling pressure.

Key Factors to Watch Moving Forward

• Rising Open Interest and Spot Volume:
  A simultaneous increase in open interest and trading volume could signal that new capital is entering the market, paving the way for the next bullish phase.

• Institutional and Regulatory Developments:
  Positive institutional news or regulatory approvals—such as an ETF authorization or a major partnership—could serve as powerful catalysts, particularly in a low-leverage environment.

• Critical Support Levels:
  The US$2.50 support zone remains a key price area to monitor. If XRP sustains or rebounds from this level while open interest rises, its technical setup could turn increasingly bullish.

Market Implications and Outlook

The reset in XRP’s open interest represents a significant technical development in the crypto derivatives market. It suggests that excessive leveraged positions have been cleared, creating a healthier environment for accumulation and potential structural rebound if new capital flows in. However, analysts caution that this condition does not automatically guarantee a price increase. The next direction will largely depend on external factors such as regulatory progress, institutional participation, and global digital asset adoption levels.