XRP has recovered more than 50% in value during the last month and is extending its technical rebound, analysts report. The cryptocurrency is trading around $1.51 at press time, and technical indicators like open interest suggest the rally may be far from over.
“With an average monthly growth of almost 1.3% on Binance, XRP’s Open Interest has just recorded its strongest increase since August 2025. Two phenomena, often linked, explain this.“, tweeted popular analyst Dark Fost regarding the development.
Open interest measures the value of unsettled derivative contracts. Its rising value often indicates growing speculative interest in the underlying asset.
“On one hand, the bullish momentum has attracted more investors, who have taken both long and short positions on XRP. On the other, the price increase has mechanically raised the value of open positions”, the analyst continued.
Two Factors Fueling the Current Rally
Two major reasons behind the rise in open interest include a sudden influx of new contracts and the ballooning value of these contracts.
The third quarter of 2026 has seen a major renewal of investor interest in the crypto scene, much of which had been devastated by losses in Q4 2025 and Q1 2026. Now, open interest is at the highest level in over a year.
Is a Bull Rally Extension Confirmed?
While analysts like Dark Fost are quick to call it a convincing bullish indicator, traders should exercise caution, as the same situation unfolded last August when traders expected a major end to the fiscal year, only to be hit by the largest liquidations in crypto history in October and November.
The market already shows plenty of concerning indicators. The sellers have dominated the last few days, with Net Taker Volume on Binance now at negative $115 million, the lowest since December 2025. This suggests waning demand for XRP, especially at current relatively inflated prices.
The Future
The current environment is therefore incredibly complex, and investors are looking for a clear market signal. Bitcoin’s resistance around $90k and then $100k is likely to come into play in the coming weeks and determine the outcome. If the bulls can’t push the index past it, the market is likely to head toward a short-term decline again, with cryptocurrencies like XRP following.
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