XRP futures open interest plunges 59% as funding rate collapses
XRP futures open interest (OI) fell sharply from 1.7 billion XRP in early October to about 0.7 billion XRP, a near 59% decline, according to Glassnode. The drop signals widespread position closures — Glassnode described it as a “flush-out.” The perpetual funding rate also collapsed from roughly 0.01% to 0.001%, indicating waning bullish conviction as longs stop paying to hold positions. Glassnode notes Oct. 10 as a turning point when aggressive speculation on higher XRP prices moderated. On-chain metrics show the share of XRP supply in profit has declined to 58.5% (the lowest since Nov 2024), meaning approximately 41.5% of supply (~26.5 billion XRP) is now at a loss despite spot price trading around $2.15. Analysts view these signs as evidence of a top-heavy market structure dominated by late buyers. Key keywords: XRP, open interest, funding rate, Glassnode, futures, liquidation, on-chain metrics.
Bearish
A near-60% collapse in futures open interest combined with a funding rate drop to near-zero signals significant position exits and fading bullish conviction. Historically, large OI drawdowns and collapsing positive funding rates accompany price consolidations or corrections because leverage-driven demand evaporates and late buyers are left exposed. The Glassnode note that a large share of supply sits at a loss despite higher spot prices points to a top-heavy market structure — a warning sign for potential volatility and downside pressure. Short-term impact: increased volatility and risk of further price correction as forced deleveraging or stop-loss cascades can occur. Traders should expect reduced liquidity in leveraged markets and wider spreads. Long-term impact: if on-chain selling pressure and weak funding persist, momentum may remain limited until OI and funding stabilise and profit share improves. Overall, the indicators favor caution for longs and opportunities for short-term traders to exploit mean-reversion or volatility, but they do not guarantee a prolonged bear market without additional negative triggers.