The XRP Open Interest (OI) has declined severely, losing over $3 billion in almost three months. This sharp reduction indicates a waning confidence among traders and investors in XRP’s short-term outlook. Moreover, the decline in Open Interest comes as the market experiences significant volatility and instability.
XRP Open Interest Takes Major Hit
According to Coinglass data, XRP’s Open Interest from January 2025 to date has gradually decreased in significant portions. The on-chain data analytics platform revealed that the XRP Futures Open Interest on exchanges surged around January 18 to $7.87 billion. Various exchanges, including leading names like Binance, Bybit, Bitget, and others, contributed to this massive increase.
Following its $7.87 billion surge in January, the XRP Futures Open Interest began to decline each month. At the beginning of February, it faced a significant drop to $5.94 billion, marking a 24% decrease from its initial high. While OI experienced a slight recovery in the following days, it eventually recorded an even deeper decline to $3.01 billion on February 28.
Currently, the Open Interest is sitting around $3.22 billion, reflecting a decrease of over 50%. Although this is a slight increase from its previously stated low, the cryptocurrency has still lost approximately $4.62 billion in less than three months.
In addition, the XRP Futures Open Interest on Binance has also taken a hit. On January 17 2025, the Open Interest on Binance had skyrocketed to $1.62 billion, marking a high for XRP this year. Despite this surge, XRP’s OI has fallen to $619.8 million, reflecting a loss of over $1 billion.
Notably, several factors may have contributed to this deep decline in XRP’s Open Interest. The recent market turmoil and the cryptocurrency’s subsequent price correction have fueled uncertainty over its prospects. With the downturn, the XRP price is trading at $2.28, marking a 15% decline over the past month.
Typically, Open Interest represents the total capital invested in open positions in the market. A sharp drop in OI suggests that traders are closing their positions without opening new ones, potentially indicating reduced trading activity and waning interest.
Analyst Predicts A Price Surge To $10
While XRP faces limitations due to its decline in Open Interest and broader market conditions, a technical analyst identified as ‘Steph in Crypto’ on X (formerly Twitter) has shared a chart predicting a surge in the cryptocurrency. According to the analyst, the price is gearing up for a surge above $10 soon.
The analyst’s ambitious prediction is based on the recent formation of a Golden Moving Average Convergence Divergence (MACD) Cross on the price chart. Steph presented a chart with a green box showing XRP’s price action in 2024, which saw a decline followed by a rally. The second box illustrates the cryptocurrency’s movement in 2025. If history repeats, the analyst believes that the altcoin may break out upwards again after its current consolidation phase.
Featured image from Adobe Stock, chart from Tradingview.com
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