XRP’s derivatives market is undergoing a noticeable reset as leveraged positions unwind across major exchanges, market data shows. According to a CryptoQuant report, total open interest in XRP contracts has fallen to roughly $902 million — the lowest level since 2024. That’s a sharp pullback from 2025’s peak levels, when open interest routinely sat between $2.5 billion and $3 billion. On Binance specifically, XRP open interest has dropped to about $458 million. Market observers say the decline is broad-based, not a simple migration of positions between venues, suggesting leverage is being removed systemically. XRP’s spot price, meanwhile, has stayed relatively stable compared with earlier peaks, underscoring that the move is driven by position reductions rather than sudden market shocks. Why it matters - Falling open interest often signals a “leverage cleanup” phase: speculative positions are trimmed, which usually reduces short-term volatility because there are fewer leveraged trades left to magnify price swings. - Historically, drops in open interest have tended to precede extended consolidation or the formation of new price bases rather than immediate rallies. What could happen next - Scenario A — Stabilization: If open interest remains low while price holds, the market may be digesting the leverage reset and transitioning to a more balanced structure with lower volatility. - Scenario B — Re-acceleration: If open interest rebounds alongside improving price momentum, that could indicate fresh speculative interest and the start of a new directional move. Analysts describe the current environment as a structural reset for the XRP derivatives market. The path forward will largely depend on whether leverage returns in tandem with renewed price momentum — a development traders will be watching closely. Read more AI-generated news on: undefined/news

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