XRP open interest drops $60m as RSI plunges; watch for reclaim of 44
Analyst EGRAG CRYPTO flags an XRP momentum reset after one of the sharpest RSI selloffs in its history. The RSI has hit new lows, signalling weakening speculative pressure.
A key technical trigger is an XRP RSI reclaim of 44 (the “green line”). EGRAG CRYPTO says a decisive return above 44 would suggest bearish momentum is fading and upward momentum may be rebuilding.
On derivatives, XRP open interest dropped by about $60m (reported as roughly $60 million in contracts wiped out within days). Most liquidation activity is attributed to Bybit, where highly leveraged longs were forced out. Despite the derivatives liquidation wave, XRP price is reported to have held near $1.16, which some view as a “healthy reset” rather than a structural breakdown.
Traders may watch two signals: continued XRP open interest contraction data (to confirm the flush is finishing) and whether RSI can reclaim 44, which would better align the market with a potential next expansion phase.
Relevant keywords: XRP open interest, RSI reset, derivatives liquidation, market momentum, Bybit.
Neutral
In the short term, the article highlights weakening momentum (RSI at new lows) and a large derivatives liquidation event, which can still keep volatility elevated. However, the key nuance is that the XRP price reportedly held around $1.16 while XRP open interest fell sharply—this fits the “leverage flush / healthy reset” interpretation rather than a clear structural break.
For trading, that typically means: expect choppy conditions until confirmation. A sustained drop/clear-out in XRP open interest would suggest the liquidation overhang is being removed, and an RSI reclaim of 44 would be the technical confirmation for bulls. Until both signals align, the net effect on XRP’s price is mixed, so the overall impact is best assessed as neutral.