Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
XRP Open Interest declines 30% as price consolidate below $3

XRP Open Interest declines 30% as price consolidate below $3

CoinjournalCoinjournal2025/08/26 23:35
By:Coinjournal
XRP Open Interest declines 30% as price consolidate below $3 image 0
  • XRP futures OI falls 30% to $7.7B as price slips from $3.66 peak to $2.98.
  • Whale inflows signal selling pressure, keeping XRP near $3 support zone.
  • Analysts see long-term uptrend intact, with 2025 targets above $5 still viable.

XRP futures open interest (OI) has fallen sharply over the past month, highlighting a reduction in speculative positioning as the cryptocurrency consolidates below the $3 mark.

While the decline raises caution over near-term momentum, historical trends suggest the cooling leverage environment could offer opportunities for accumulation.

Open Interest retreat signals cooling speculation

According to derivatives data, XRP’s futures OI has dropped by 30% over the past month, falling to $7.7 billion from $11 billion.

This pullback has coincided with spot prices retreating from a recent peak of $3.66 to $2.98.

A decline in open interest often reflects waning speculative activity, with traders either taking profits or reducing exposure due to uncertainty.

This is not the first time XRP has seen such a sharp reset.

In Q1, open interest dropped 65%, plunging from $8.5 billion to $3 billion, while spot prices fell more than 50%.

The current trend, while less severe, mirrors that earlier setup, raising the prospect of traders re-engaging once OI finds a new base.

On the technical front, XRP has a daily fair value gap between $2.33 and $2.65, which analysts highlight as a likely demand zone if open interest continues to ease.

Historically, moderating leverage has preceded stabilisation periods or accumulation phases that pave the way for fresh rallies.

Controlled leverage flush reduces risk of cascading selloffs

Despite the pullback, liquidation data suggests that market stress remains contained.

Only $22 million in long positions were liquidated on Monday, with $56 million in liquidations during the 6% correction on August 14.

Compared with prior episodes of sharp selloffs in overheated conditions, these figures reflect a relatively controlled leverage reset.

The limited liquidations reduce the risk of cascading sell pressure that can exacerbate declines in volatile markets.

This controlled backdrop offers a degree of resilience, supporting the case that XRP may find a price bottom in the near term.

If the $2.33–$2.65 support zone holds, traders could interpret the current leverage unwind as constructive rather than a sign of deeper structural weakness.

Whale inflows pressure near-term outlook

While open interest has cooled, on-chain data signals potential headwinds from large holders.

According to CryptoQuant, XRP’s rally to $3.66 was accompanied by significant inflows to exchanges, with the heaviest activity coming from whale wallets holding 100,000 to 1 million XRP.

Historically, such spikes in whale inflows have preceded major market tops, including levels above $3 in 2018, $1.90 in 2021, and $0.90 in 2023.

Currently, XRP is consolidating just below $3 while exchange inflows remain elevated, indicating sustained selling pressure from large investors.

If this pattern persists, downside risks toward the $2.6 support zone may materialize.

However, analysts note that a strong defense of the $3 threshold would underscore market resilience and potentially set the stage for a renewed bullish push.

Structurally, XRP’s broader uptrend remains intact.

Compared with past cycles, the cryptocurrency is positioned in a stronger technical environment, with long-term targets above $5 in 2025 still achievable despite near-term volatility.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin Whales Hit Record High in Accumulation

The number of addresses holding over 100 BTC has reached an all-time high, signaling strong whale accumulation.What Does Whale Accumulation Mean for the Market?Is the Market Preparing for the Next Bull Run?

Coinomedia2025/08/27 08:10
Bitcoin Whales Hit Record High in Accumulation

CRO Surges 26% After Trump Media Unveils CRO DAT

$CRO jumps 26.6% after Trump Media Group announces plans to launch CRO DAT platform.CRO Soars as Trump Media Announces New PlatformWhat Is CRO DAT and Why It MattersMarket Reactions and What’s Next

Coinomedia2025/08/27 08:10
CRO Surges 26% After Trump Media Unveils CRO DAT

Altcoins Mirror 2018–2021 Setup for Supercycle

Altcoins show a double bottom with MACD flip, echoing the 2018–2021 supercycle that delivered 15x gains.Altcoins Repeat Familiar Bullish PatternWhy This Setup Looks Stronger NowWill Altcoins Deliver Another 15x?

Coinomedia2025/08/27 08:10
Altcoins Mirror 2018–2021 Setup for Supercycle

Chainlink Closes in on Hyperliquid in Market Cap Race

Chainlink ($LINK) is catching up to Hyperliquid ($HYPE) in market cap. Here's what it means for both tokens.Chainlink Market Cap Nears HyperliquidWhat’s Fueling the Surge?Could Chainlink Take the Lead?

Coinomedia2025/08/27 08:10
Chainlink Closes in on Hyperliquid in Market Cap Race