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XRP’s bullish momentum is facing fresh doubts as futures open interest (OI) plunges to its lowest level in 2025. The decline in OI suggests a lack of trader confidence and a potential slowdown in market activity, raising concerns about whether XRP’s recent rally is running out of steam.
What’s Behind the Drop in XRP Open Interest?
Open interest represents the total number of outstanding futures contracts in the market. When OI declines, it often signals that traders are closing positions, reducing leverage, or moving to the sidelines. Several factors may be driving XRP’s drop in futures OI:
- Profit-Taking After Recent Gains – XRP saw significant price appreciation earlier in 2025, leading traders to unwind leveraged positions and lock in profits.
- Market Uncertainty – Ongoing regulatory developments and broader crypto market volatility could be making traders more cautious.
- Lower Trading Volume – A decrease in trading activity across major exchanges could indicate waning speculative interest in XRP futures.
Does Falling Open Interest Signal Weakness?
A drop in open interest doesn’t necessarily mean a bearish trend reversal, but it does suggest that traders are less willing to take aggressive positions. If XRP fails to attract fresh inflows or trading interest, the price could struggle to maintain its recent momentum.
However, some analysts view this decline as a potential reset for the next leg up. A drop in leverage reduces the risk of liquidation cascades, making room for a more sustainable rally if spot demand increases.
Key Support Levels to Watch
If XRP continues to face pressure, traders are eyeing crucial support levels to determine the next move:
- $0.60 – A critical short-term support zone.
- $0.55 – A stronger demand level that could attract buyers.
- $0.50 – A psychological level that must hold to prevent a deeper correction.
On the upside, XRP would need to reclaim $0.70 and beyond to regain bullish momentum.
While the drop in futures OI signals a cooling period, XRP’s long-term fundamentals remain intact. Institutional interest, Ripple’s continued expansion, and developments in the SEC lawsuit could all play a role in shaping the asset’s trajectory in 2025.
For now, traders will be watching on-chain activity, whale movements, and derivatives data to assess whether XRP is gearing up for a rebound or facing extended consolidation.
