XRP has seen a dramatic shift in market dynamics, with open interest plummeting by $2.4 billion as the price retreats to $3.18. This sudden drop has left traders questioning whether XRP can recover or if further declines are imminent. Let’s dive into the latest XRP news and analyze what this means for investors.
XRP Open Interest Plummets: What’s Behind the $2.4 Billion Drop?
XRP’s open interest has sharply declined, losing nearly $2.4 billion in just a few days after peaking at $3.65 on July 18, 2025. This reduction suggests a massive withdrawal of speculative capital from the market. Key factors contributing to this drop include:
- Rotation of capital toward Ethereum, which saw an 11% rebound.
- Market caution ahead of macroeconomic events like the Federal Reserve’s interest rate decision.
- Reduced leverage across the broader cryptocurrency market.
XRP Price Holds Key Support: Will $3.10–$3.20 Zone Hold?
Despite the decline, XRP has shown resilience by maintaining a critical demand zone between $3.10 and $3.20. Analysts consider this range a strong support level, with nearly $30 million in positions concentrated here. If this zone holds, it could signal underlying buying pressure and set the stage for a rebound.
Historical Patterns Suggest XRP Could Rebound
Historical data reveals that XRP has previously surged after similar open interest fluctuations. In past instances, an 80% price increase followed a $4 billion to $10 billion rise in open interest. While past performance doesn’t guarantee future results, this pattern offers hope for traders.
XRP Market Outlook: Short-Term Caution, Long-Term Potential
The near-term outlook remains cautious, with traders closely watching the $3.10–$3.20 support range. A breakdown below this level could trigger further declines, while stability could lead to consolidation before a potential rebound. Long-term catalysts, such as Ripple’s legal clarity and potential XRP-based ETF approvals, could reignite bullish momentum.
FAQs
Why did XRP open interest drop by $2.4 billion?
The drop was driven by capital rotation toward Ethereum, broader market deleveraging, and caution ahead of key economic events.
Is XRP’s $3.10–$3.20 support level strong?
Yes, this zone has shown resilience, with significant trading activity concentrated here. A hold above this range could indicate a rebound.
Could XRP rebound like it did in the past?
Historical patterns suggest potential for recovery, but market conditions and external factors will play a decisive role.
What are the key factors influencing XRP’s price?
Macroeconomic events, Ripple’s legal developments, ETF speculation, and broader crypto market trends are major influences.
