XRP OI Crashes to $369M on Binance, Marking Lowest Levels Since 2024

The XRP Open Interest (OI) on Binance has recently crashed to its lowest levels since 2024, indicating a decline in derivatives activity.

XRP remains under selling pressure as its ongoing downtrend stretches into the twelfth month. Meanwhile, alongside the weak price performance, new derivatives data points to another sign of fading market activity. 

According to a recent report from CryptoQuant analyst Arab Chain, Binance has recorded the lowest XRP Open Interest since 2024.

Arab Chain revealed that Open Interest for XRP contracts on Binance has dropped to about $369.6 million, the lowest level seen since 2024. 

This decline comes even though Binance continues to post high trading volumes across its overall derivatives market. The trend suggests that the slowdown is limited to XRP contracts.

Traders Cut Back on Leveraged XRP Positions

According to Arab Chain, the drop in XRP Open Interest shows that traders are closing positions and using less leverage. 

Most market participants have reduced their exposure as uncertainty continues to affect market sentiment instead of opening new leveraged trades or keeping existing ones.

He also called attention to the uncertainty that followed the Federal Reserve’s latest monetary policy decision. He believes the decision encouraged traders to become more cautious, leading many to reduce their leveraged exposure to XRP.

Arab Chain stressed that the decline only affects XRP contracts and does not reflect the overall performance of Binance’s derivatives market. While trading activity remains high across the exchange, interest in leveraged XRP positions has dropped.

Why the Decline in Open Interest Matters

Arab Chain pointed out that falling Open Interest does not automatically indicate either a bullish or bearish outlook. However, it simply shows changes in market participation and the amount of leverage traders are willing to use.

Notably, lower leverage can reduce the risk of liquidations and limit sharp price swings caused by heavily leveraged positions. Meanwhile, it can also show that fewer traders are interested in keeping existing XRP positions or opening new ones under current market conditions.

Arab Chain noted that a rise in Open Interest alongside a recovery in XRP’s price could indicate that speculative trading is returning and fresh capital is flowing back into XRP derivatives. 

However, if Open Interest continues to fall, it could suggest that traders remain cautious despite the strong trading volumes across Binance’s broader derivatives market.

XRP Technical Indicators Still Favor the Bears

Meanwhile, XRP’s short-term outlook remains weak. The cryptocurrency is currently trading at around $1.0755, posting a modest 0.3% gain over the past 24 hours. Even with this slight increase, the overall market structure continues to favor the bears.

XRP remains below the 20-day Exponential Moving Average (EMA20) at $1.0947, the 50-day Exponential Moving Average (EMA50) at $1.1287, and the 200-day Exponential Moving Average (EMA200) at $1.4104. This shows that bearish momentum still controls the daily chart.

For now, the first support area sits between $1.07 and $1.08. This zone lines up with both the daily S1 pivot and the lower Bollinger Band, which makes it an important level for buyers to defend.

Below that, $1.00 remains the key psychological support level. If XRP drops below it, the price could fall toward $0.93, with $0.80 becoming the next downside target if selling pressure continues to build.

On the upside, buyers first need to push XRP back above the $1.10 to $1.11 range, where the daily pivot meets the EMA20. After that, the next major hurdle is the EMA50 at $1.1287, which sits close to the upper Bollinger Band at $1.1388. XRP will need stronger buying momentum to break above those levels and improve its short-term outlook.