XRP Futures Activity Declines Amid Market Adjustments
According to Cointelegraph, XRP futures open interest has experienced a significant decline of 30% over the past month, dropping from $11 billion to $7.7 billion. This decrease coincides with a retreat in XRP prices from a peak of $3.66. Typically, a reduction in open interest suggests a decrease in speculative activity, indicating either profit-taking or a loss of confidence among leveraged traders. A similar pattern was observed in the first quarter when XRP's open interest fell sharply from $8.5 billion to $3 billion, accompanied by a more than 50% drop in spot prices. The current situation mirrors this trend, albeit with less intensity, suggesting that traders might begin accumulating once open interest stabilizes.
Technically, XRP has a daily fair value gap between $2.33 and $2.65, which could serve as a demand zone if open interest continues to decline. A reduction in open interest often precedes periods of price stabilization or a new accumulation phase, historically providing attractive re-entry points before renewed rallies. Despite the drop in open interest, liquidations have remained relatively controlled, with only $22 million in long positions liquidated on a recent Monday and $56 million during a 6% pullback on August 14. These figures indicate a managed leverage flush, reducing the risk of cascading sell pressure. Overall, while the decline in open interest warrants caution, it also presents an opportunity for a price bottom. If XRP maintains the $2.33–$2.65 range, traders might view the cooling leverage environment as a potential springboard for future gains rather than a precursor to new lows.
Data from CryptoQuant reveals that XRP's recent rally to $3.66 was accompanied by significant inflows to exchanges, particularly from whale cohorts holding between 100,000 and 1 million XRP. Historically, such spikes in exchange inflows have preceded major market tops, as observed in 2018, 2021, and 2023. This pattern suggests that large investors may be positioning to take profits once again. Currently, XRP is consolidating just below $3, with elevated inflows indicating near-term selling pressure. If whales continue to offload, there is a risk of a decline toward the $2.6 support zone. However, a strong defense of the $3 level could signal resilience and potentially pave the way for another bullish move. Structurally, XRP's broader uptrend remains intact, and despite short-term volatility, long-term targets above $5 in 2025 are still achievable. This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
