XRP Open Interest Plummets: Analyzing the Decline and Market Implications
Our detailed editorial content is crafted by top industry professionals and experienced editors. Discover the latest insights on XRP’s market performance.
Significant Decline in XRP Open Interest: What It Means for Traders
In recent months, XRP’s Open Interest (OI) has experienced a dramatic drop, shedding over $3 billion within a short span. This downturn signals a diminishing confidence among traders and investors regarding XRP’s short-term potential. The reduction in Open Interest aligns with heightened market volatility and uncertainty.
Advertisement Banner
Major Setback for XRP Open Interest
According to data from Coinglass, XRP’s Open Interest has progressively decreased from January 2025 to the present. Initially, XRP Futures Open Interest on various platforms surged to $7.87 billion around January 18. Key players like Binance, Bybit, and Bitget were instrumental in this increase.
Following its peak in January, XRP Futures Open Interest began a steady decline. By early February, it had fallen to $5.94 billion, a 24% decrease. Although there was a brief recovery, the OI further declined to $3.01 billion by the end of February. Currently, the Open Interest stands at approximately $3.22 billion, indicating a significant drop of over 50% from its January high. This represents a loss of around $4.62 billion in less than three months.
On Binance, XRP Futures Open Interest also experienced a sharp decline. On January 17, 2025, it reached a high of $1.62 billion, but has since plummeted to $619.8 million, reflecting a loss of over $1 billion.
Various factors, such as recent market turbulence and subsequent price corrections, have contributed to the decline in XRP’s Open Interest. Currently, XRP is trading at $2.28, a 15% decrease over the last month. Typically, Open Interest reflects the total capital invested in open positions in the market. A significant drop usually indicates that traders are closing positions without opening new ones, suggesting reduced trading activity and waning investor interest.
Analyst Predicts a Potential Price Surge to $10
Despite the challenges faced by XRP due to its declining Open Interest and broader market conditions, a technical analyst known as ‘Steph in Crypto’ on X (formerly Twitter) has provided a bullish outlook for the cryptocurrency. The analyst predicts a price surge above $10 in the near future.
This forecast is based on the formation of a Golden Moving Average Convergence Divergence (MACD) Cross on the price chart. Steph’s chart features a green box depicting XRP’s price action in 2024, highlighting a decline followed by a rally. The second box illustrates its trajectory in 2025. If history repeats itself, the analyst anticipates that the altcoin may break out upwards again after its current consolidation phase.
XRP is currently trading at $2.3 on the 1D chart, as indicated by Tradingview.com.
Our Editorial Process
At Bitcoinist, our editorial process is dedicated to providing meticulously researched, accurate, and unbiased content. We adhere to stringent sourcing standards, with each page undergoing comprehensive review by our team of top technology experts and seasoned editors. This ensures that our content maintains integrity, relevance, and value for our readers.
