XRP leverage decreases as speculators leave and open interest reaches 2024 lows

After reaching the $1 billion mark earlier in 2025, open interest on XRP futures has fallen sharply.

Ripple (XRP) open interest (OI) on cryptocurrency exchange Binance has fallen to its lowest level since late 2024, amid an apparent rebalancing in the derivatives market.

Data collected by CryptoQuant shows that open interest has fallen to approximately $453 million, indicating a substantial decrease in the use of leveraged positions and a shift in trading behavior.

Reset on the XRP derivatives market

Earlier in 2025, XRP futures OI exceeded $1 billion several times. This period coincided with strong price increases and increased speculative activity. Such high levels reflected a large participation of traders using leverage, which increased the market’s sensitivity to sharp and sudden price movements.

A similar pattern occurred again in mid-2025, when OI climbed back above the $1 billion mark. This indicated a renewed speculative interest and continued dependence on derivatives. However, the current market structure has changed significantly. CryptoQuant found that OI has been trending lower over time before falling more sharply to current levels. This marks a significant withdrawal of short-term speculative traders from the market.

The drop in OI has had a direct impact on XRP’s recent price behavior. Lower risk appetite and reduced momentum in the derivatives market have contributed to volatile price movements, especially in the absence of strong liquidity-driven breakouts. At the same time, CryptoQuant noted that OI downsizing reduces the likelihood of forced liquidations, which are more likely to occur during periods of excessive debt.

Previous examples have shown that phases of low OI often represented transition periods in the market. During such phases, trading activity tends to shift from highly speculative, leverage-driven behavior to conditions that are more dependent on actual spot market demand.

Mixed market signals

The structural reset comes at a time when XRP’s decline has pushed it below several crucial support levels, including USD 2.00 and USD 1.90. The altcoin is now hovering around $1.87. While analyst Ali Martinez warned that a loss of $1.90 could lead to further downside, on-chain data points to mixed signals.

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Santiment stated that rising bearish sentiment historically preceded the price recovery for XRP. Meanwhile, Crypto Whale data shows that large holders may be accumulating again as spot taker CVD indicates buying pressure is stronger than selling pressure.