The XRP Open Interest (OI) has declined severely, losing over $3 billion in almost three months. This sharp reduction indicates a waning confidence amongst traders and investors in XRP’s short-term outlook. Furthermore, the decline in Open Interest comes because the market experiences significant volatility and instability.
XRP Open Interest Takes Major Hit
In line with Coinglass data, XRP’s Open Interest from January 2025 thus far has step by step decreased in significant portions. The on-chain data analytics platform revealed that the XRP Futures Open Interest on exchanges surged around January 18 to $7.87 billion. Various exchanges, including leading names like Binance, Bybit, Bitget, and others, contributed to this massive increase.
Following its $7.87 billion surge in January, the XRP Futures Open Interest began to say no every month. Initially of February, it faced a big drop to $5.94 billion, marking a 24% decrease from its initial high. While OI experienced a slight recovery in the next days, it will definitely recorded an excellent deeper decline to $3.01 billion on February 28.
Currently, the Open Interest is sitting around $3.22 billion, reflecting a decrease of over 50%. Although it is a slight increase from its previously stated low, the cryptocurrency has still lost roughly $4.62 billion in lower than three months.
As well as, the XRP Futures Open Interest on Binance has also taken successful. On January 17 2025, the Open Interest on Binance had skyrocketed to $1.62 billion, marking a high for XRP this yr. Despite this surge, XRP’s OI has fallen to $619.8 million, reflecting a lack of over $1 billion.
Notably, several aspects could have contributed to this deep decline in XRP’s Open Interest. The recent market turmoil and the cryptocurrency’s subsequent price correction have fueled uncertainty over its prospects. With the downturn, the XRP price is trading at $2.28, marking a 15% decline over the past month.
Typically, Open Interest represents the whole capital invested in open positions out there. A pointy drop in OI suggests that traders are closing their positions without opening recent ones, potentially indicating reduced trading activity and waning interest.
Analyst Predicts A Price Surge To $10
While XRP faces limitations attributable to its decline in Open Interest and broader market conditions, a technical analyst identified as ‘Steph in Crypto’ on X (formerly Twitter) has shared a chart predicting a surge within the cryptocurrency. In line with the analyst, the worth is gearing up for a surge above $10 soon.
The analyst’s ambitious prediction is predicated on the recent formation of a Golden Moving Average Convergence Divergence (MACD) Cross on the worth chart. Steph presented a chart with a green box showing XRP’s price motion in 2024, which saw a decline followed by a rally. The second box illustrates the cryptocurrency’s movement in 2025. If history repeats, the analyst believes that the altcoin may break out upwards again after its current consolidation phase.
Featured image from Adobe Stock, chart from Tradingview.com
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