- XRP futures open interest declines 30% to $7.7B while prices dip from $3.66 to $2.98.
- Whale inflows indicate selling pressure, keeping XRP near the $3 support level.
- Analysts maintain a long-term bullish outlook, with 2025 price targets exceeding $5 still plausible.
The open interest in XRP futures has seen a notable drop this month, revealing decreased speculative interest as the cryptocurrency stabilizes below $3.
Though this decline raises concerns about immediate momentum, historical data suggests that a less leveraged market might present accumulation opportunities.
Decline in Open Interest Indicates Reduced Speculation
XRP’s futures open interest has decreased by 30% over the last month, dropping from $11 billion to $7.7 billion.
This decrease corresponds with spot prices falling from a recent high of $3.66 to $2.98.
A reduction in open interest often points to diminishing speculative activity, with traders either securing profits or lowering their positions amid uncertainty.
This isn’t the first instance of a sharp drop in XRP’s open interest.
Earlier this year, open interest plummeted by 65%, decreasing from $8.5 billion to $3 billion, while spot prices fell by over 50%.
The current pattern, though less drastic, reflects similar trends from before, indicating that traders may re-enter once open interest stabilizes.
On the technical side, XRP displays a daily fair value gap between $2.33 and $2.65, noted by analysts as a potential demand area if open interest continues to decline.
Historically, easing leverage has often foreshadowed stabilization or accumulation phases, leading to new price rallies.
Controlled Leverage Flush Mitigates Selloff Risks
Despite the recent downturn, liquidation data indicates that market pressures are being managed.
Only $22 million in long positions experienced liquidation on Monday, with $56 million during a 6% drop on August 14.
When compared to previous sharp selloffs in overheated markets, these figures highlight a more moderated leverage adjustment.
The limited number of liquidations decreases the likelihood of cascading sell pressures that can worsen declines in volatile markets.
This controlled environment contributes to a level of resilience, suggesting that XRP may find a price floor in the short term.
Should the support zone of $2.33–$2.65 hold, traders might view this leverage unwinding as constructive rather than indicative of deeper issues.
Whale Inflows Create Near-term Challenges
While open interest has cooled, on-chain data indicates potential challenges from large investors.
According to CryptoQuant, the rally of XRP to $3.66 coincided with significant inflows to exchanges, primarily from whale wallets holding between 100,000 and 1 million XRP.
Historically, such surges in whale inflows have preceded significant market peaks, including levels above $3 in 2018, $1.90 in 2021, and $0.90 in 2023.
Currently, XRP is stabilizing just below $3 while exchange inflows remain high, indicating persistent selling from larger investors.
If this trend persists, there could be downside risks toward the $2.6 support level.
Nevertheless, analysts emphasize that a robust defense of the $3 level would reflect market strength and might pave the way for a renewed bullish phase.
Structurally, XRP’s overarching uptrend remains solid.
In comparison to prior cycles, the cryptocurrency finds itself in a more favorable technical landscape, with long-term targets exceeding $5 in 2025 still achievable despite short-term volatility.
