XRP Open Interest Sees Significant Drop While Price Holds Key Demand Zone, Suggesting Possible Reset

• XRP Open Interest surged to a record $10.94 billion before sharply dropping to $8.48 billion within a week.

• Ethereum’s price bounce caused capital rotation away from XRP, leading to a 13% XRP price decline.

• Despite the Open Interest drop, XRP price holds a critical demand zone, suggesting resilient buying pressure.

XRP Open Interest fell $2.46B but price holds key $3.10-$3.20 zone, signaling strong spot demand and possible breakout. Stay updated with COINOTAG.

XRP Open Interest Experiences Sharp Decline Amid Market Rotation

On July 22, Ripple’s XRP Open Interest (OI) hit an all-time high of $10.94 billion after a prolonged sideways trend. However, this momentum reversed quickly as OI plunged $2.46 billion to $8.48 billion within days, dragging XRP price down 13% from its $3.60 peak. This significant unwind reflects a market rotation favoring Ethereum, which rebounded 11% from its $3,530 support level.

How Does XRP Price React to Open Interest Fluctuations?

The XRP/ETH pair declined 7.54% as capital shifted back to Ethereum, exposing XRP to selling pressure. Yet, XRP price found support near $3.10-$3.20, a zone that previously triggered a 25% bounce last cycle. This support aligns with historical data where XRP rallied 80% from a $2 base following a spike in Open Interest from $4 billion to $10 billion, indicating that the recent sell-off may represent a reset rather than rejection.

Source: TradingView (XRP/ETH)

XRP Price Holds Critical Demand Zone Despite Leverage Flush

Ripple experienced its sharpest leverage unwind since May, with Open Interest dropping $2.46 billion compared to a $980 million decline in May. Despite this, XRP’s price only fell roughly 10%, highlighting strong spot market absorption and underlying demand. The daily chart reveals XRP consolidating between $3.10 and $3.20, a key support range that often precedes bullish breakouts in uptrends.

Source: TradingView (XRP/USDT)

What Does the Recent Open Interest Flush Indicate for XRP’s Market Structure?

The $2.46 billion Open Interest reduction coincided with XRP/ETH weakening, overheated funding rates, stretched RSI levels, and realized profits exceeding $1 billion—the largest spike since the post-election period. This pattern suggests a classic market reset rather than a fundamental rejection. XRP’s price stability and technical setup imply that if capital rotates back, a breakout above $3.50 is plausible.

Frequently Asked Questions

Why did XRP Open Interest reach a record high before dropping?

XRP Open Interest surged to $10.94 billion as leveraged traders increased positions, but profit-taking and market rotation towards Ethereum caused a rapid unwind.

How does XRP’s price support zone affect its future outlook?

Holding the $3.10-$3.20 support zone suggests resilient buying pressure, which may lead to a breakout if market conditions improve.

Key Takeaways

• XRP Open Interest dropped $2.46 billion: marking the largest unwind since May but price only declined 10%, showing strong spot demand.
• Price holds $3.10-$3.20 demand zone: a critical support area that previously triggered significant rallies.
• Market reset, not rejection: technical indicators and capital flow suggest potential for a bullish breakout above $3.50.

Conclusion

XRP’s recent Open Interest flush reflects a healthy market reset amid capital rotation to Ethereum. Despite a $2.46 billion unwind, XRP price remains supported in a key demand zone, signaling strong underlying demand. This resilience positions XRP for a potential breakout, making it a critical asset to watch in the evolving crypto market.