XRP Open Interest Hits 2025 Lows, Sets Up Potential Rally
XRP open interest on Binance has plunged to $494 million following the October 10 market crash, matching lows last seen in April and May 2025. This sharp decline reflects extensive deleveraging among futures traders and coincides with a 15% rise in spot trading volumes, signaling strong accumulation by long-term holders.
Key support zones lie at $2.20–2.40 and $1.85, with a deeper floor between $0.60 and $0.70. On the upside, XRP must clear $2.80–3.00 to regain momentum; a sustained increase in open interest could trigger a short squeeze, pushing prices toward $3.30–3.50 and potentially $4.20–4.50.
Traders should monitor XRP open interest trends, spot volumes and price reactions at these levels to identify entry points. Historical parallels from May 2025 suggest that a 25% rebound in open interest and surging volume may catalyze a swift rally, offering attractive risk-reward setups for both short-term positions and longer-term gains.
Bullish
The sharp drop in XRP open interest to 2025 lows indicates widespread deleveraging, which historically sets the stage for subsequent price rallies. Coupled with increased spot trading volumes and technical support at $2.20–2.40, these factors create a bullish foundation. In the short term, a rebound in open interest could trigger a short squeeze and drive prices above $2.80–3.00. Over the longer term, sustained accumulation by long-term holders and historical parallels to May 2025 suggest potential upside toward $4.20–4.50. Traders can leverage these dynamics for favorable risk-reward positions.