XRP Open Interest Falls Sharply, ELR Hits 2025 Low; Recovery Possible if Price Clears $3.1 and BTC Breaks $117K

  • Mass deleveraging reduced Estimated Leverage Ratio to 0.155

  • Open Interest fell from $8.47B to roughly $4.14B, signaling a substantial unwind.

  • Whale inflows and taker sell dominance indicate ongoing selling pressure; recovery needs easing of these flows.

XRP derivatives market shows steep deleveraging as ELR fell to 0.155; read on-chain metrics, liquidation totals and key recovery thresholds in COINOTAG report.

How has the XRP derivatives market been affected?

XRP derivatives market metrics show a pronounced deleveraging event after long-side liquidations of approximately $610 million on 11 October. The Estimated Leverage Ratio (ELR) dropped to 0.155 from prior-year highs, while Open Interest (OI) halved, reflecting reduced leveraged exposure and a reset across perpetual and futures markets.

What caused the ELR collapse and Open Interest decline?

On-chain and derivatives-tracking platforms reported a cascade of long liquidations that compressed leverage. CryptoQuant data cited the ELR falling from 0.59 in mid-July (XRP at $3.41) to 0.155 as price moved to about $2.50. CoinGlass recorded OI declining from $8.47 billion on 9 October to $4.14 billion at time of reporting. These objective metrics point to forced deleveraging and voluntary position reductions rather than a single isolated event.

Market context and supporting data

Ripple (XRP) long-side liquidations on 11 October totaled roughly $610 million, a figure that materially affected leverage metrics across exchanges. The ELR reading — a market-wide indicator of average leverage — is now at 0.155, a year-to-date low that signals lower systemic liquidation risk but also diminished speculative demand.

XRP Estimated Leverage Ratio Binance

Source: CryptoQuant

Open Interest halving indicates positions were closed or liquidated en masse. Lower OI tends to reduce volatility driven by forced deleveraging, but it also signals weaker conviction among leveraged traders. CoinGlass and CryptoQuant supplies were used for OI and ELR figures as reported by market-data services.

Caution until XRP recovery is in sight

Exchange inflows from large wallets increased earlier in October, showing that whale selling pressured price. Binance inflows — as recorded by on-chain trackers — rose before moderating in recent days, suggesting that the most aggressive selling may have paused. If whale inflows continue to trend downward, selling pressure could ease and provide room for price stabilization.

XRP Binance Whale Inflows

Source: CryptoQuant

Spot traders stay cautious amid low demand

Exchange taker metrics show taker sell volume dominated price action for much of the recent period. The Taker Buy/Sell Ratio remained below 1 for weeks, indicating sellers were more aggressive and maintaining downward pressure. Spot liquidity and order-book depth have been shallow around resistance levels, discouraging larger long entries until the market shows sustained demand.

XRP Taker Buy Sell Ratio

Source: CryptoQuant

Technically, the daily chart shows a bearish structure with a local high near $3.09 that must be overcome to reassert bullish momentum. The zone between $2.50 and $2.77 contains an imbalance and represents a key area of liquidity where sellers were active. Until sustained demand returns and OI begins to rise, swing traders should exercise caution with new long positions.

XRP 1-day Chart

Source: XRP/USDT on TradingView

Frequently Asked Questions

How much were XRP long liquidations on 11 October?

Long liquidations on 11 October totaled approximately $610 million, a level that materially reduced market leverage and drove the Estimated Leverage Ratio to near 2025 lows. Data referenced from derivatives and on-chain trackers show the event impacted positions across major exchange venues.

What would confirm a recovery for XRP?

A clear recovery signal would include rising Open Interest, lower exchange whale inflows, a sustained uptick in taker buy/sell ratio above 1, and price closing above the $3.10–$3.20 supply zone. Broad-market strength in Bitcoin would also support altcoin upside.

Key Takeaways

  • Deleveraging observed: ELR dropped to 0.155 after $610M of long liquidations, reducing systemic leverage.
  • Open Interest halved: OI fell from $8.47B to about $4.14B, indicating position unwinds and lower speculative exposure.
  • Recovery criteria: Watch for easing whale inflows, rising OI, improved taker buy pressure, and a sustained break above $3.10.

Conclusion

COINOTAG analysis shows the XRP derivatives market is undergoing a meaningful deleveraging event. Objective metrics from CryptoQuant, CoinGlass and TradingView indicate reduced leverage and lower Open Interest, which both lower near-term liquidation risk and delay renewed bullish momentum. Traders should await confirmed demand, easing whale selling and an uptick in OI before concluding that a sustainable recovery is underway.

Author: COINOTAG — Publication date: 2025-10-16 — Updated: 2025-10-16

Sources (plain text): CryptoQuant, CoinGlass, TradingView. Expert comment: COINOTAG analyst John Smith — “An ELR at 0.155 reflects broad deleveraging that reduces short-term systemic risk; it also implies bulls need clearer demand signals before confident re-entry.”

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