XRP open interest don rise as funding turn red, mean say more bearish leverage — and fit cause squeeze
CryptoQuant analyst Maartunn data show say XRP open interest climb to about $943M over di weekend, den climb further to roughly $952M after one rebound. At di same time, XRP funding rates remain negative (red), one derivatives signal wey show say shorts dey effectively dey pay longs—meaning fresh bearish leverage rather than clean long build.
Di article warn say if XRP open interest increase during/after one bounce, volatility and liquidation risk usually go up. Dat one raise di chance of short squeeze if price push into nearby resistance, but di prevailing setup still point to downside unless XRP fit reclaim key levels.
Traders dem told make dem monitor XRP open interest together with funding rates and price action around support near $1.34–$1.36. If XRP no hold above dis zone, bearish control likely go continue. If buyers force price into di $1.375–$1.38 area, clustered short liquidations fit trigger faster upside toward about $1.38–$1.405, fit reduce open interest as shorts close.
Related context: XRP dey around $1.35 as e de write and week-over-week e flat, while BTC gain over 4% in 24 hours—meaning di broader bounce fit be fragile when derivatives positioning still bearish.
Bearish
Wen open interest for XRP dey rise as funding rates dey always red (negative), e mean say short traders dey add leverage even as price dey bounce. Dat normally mean more downside fit follow or at least e go limit how long rallies fit last. But di story talk say plenti liquidations dey cluster near resistance levels, so squeeze fit happen if XRP break up into $1.375–$1.38.
Short-term, market dey vulnerable to whipsaws: bearish positioning fit cap upside, but if trigger enter liquidation zone e fit cause sharp, short-lived rally. Long-term, if open interest for XRP no reset and funding no move to less-negative/positive, derivative structure go remain heavy and e go raise chance say rebounds go fade instead of trend higher.