XRP Open Interest Hits Lows as Leverage Reset Sets Stage for Rally
XRP open interest on Binance has tumbled back to mid-year lows, reflecting a broad leverage reset across derivatives. While open interest plunged below previous troughs, XRP’s price has held above $2.60, suggesting speculative positions have been flushed and strong hands remain in control. On-chain data from CryptoQuant and analyst CryptosRus point to rising accumulation by dormant addresses and consistent spot demand. Historically, similar XRP open interest resets preceded major breakouts—from $0.70 to $3.50—and technicals now show a rebound off ascending channel support with key resistance at $2.80. Traders should watch for renewed liquidity and a decisive push above $2.80 to target the next upside leg around $3.00–$3.50.
Bullish
The sharp drop in XRP open interest indicates a cleansing of speculative, leveraged positions, while the price holding above $2.60 and signs of accumulation by dormant addresses point to renewed spot demand. Historical precedents show that such leverage resets often lead to significant rallies. Combined with technical support at the ascending channel and a key resistance at $2.80, the setup favors a bullish breakout. In the short term, traders can look for a push past $2.80 to trigger further upside. Over the long term, sustained accumulation and reduced volatility may underpin a larger rally toward $3.00–$3.50.