XRP Open Interest Plunges to 1-Year Low on Binance
XRP open interest on Binance has dropped sharply from over $1.7 billion to around $504 million, marking its lowest level since November 2024. This steep decline in XRP open interest coincides with a weekend price dip below $2, followed by a modest rebound to $2.23. CryptoQuant data shows that funding rates have frequently turned negative over the past two months, indicating persistent selling pressure. The combination of low open interest, negative funding rates, and muted price action suggests weak market conviction and a lack of long-term accumulation by institutional players. Despite this bearish outlook, some analysts point to a bullish wedge pattern and recent XRP/BTC gains, cautioning that maintaining support above $2 is crucial for any sustained rally.
Bearish
The sharp drop in XRP open interest to one-year lows on Binance reflects a significant outflow of liquidity from leveraged positions. Negative funding rates for two months signal that short sellers dominate the market. Combined with a price dip below $2 and lack of institutional accumulation, these factors point to weakening momentum and potential further downside. While bullish wedge patterns and recent XRP/BTC strength hint at a possible rebound, sustained recovery requires renewed interest. Historically, assets with declining open interest and negative funding rates often face continued selling pressure before a genuine trend reversal.