XRP Open Interest Just Reset Again. Here’s the Significance

XRP’s open interest on Binance has fallen sharply, reaching the same level it last saw in May 2025. At that time, the market reset in leverage preceded one of XRP’s strongest rallies of the year, when the asset climbed to over $3.5.

While the recent chart shared by crypto commentator CryptosRus (@CryptosR_Us) highlights this renewed decline in open interest, XRP’s price remains relatively elevated at around $2.6 following a notable recovery where it outperformed the top 10 cryptocurrencies.

In the post, CryptosRus noted that the current market environment shows “leverage is gone, yet strong hands are still holding,” suggesting that the absence of leveraged positions could make way for more stable accumulation by investors.

Low Leverage Signals Market Reset

The CryptoQuant chart indicates that open interest has returned to its floor near $550 million, matching the trough from earlier in the year. However, unlike the May decline, XRP’s price has remained much higher this time, holding above $2.50.

This divergence between price and leverage suggests that speculative positions have been flushed out, but spot demand has sustained market strength. Historically, a drop in open interest reflects reduced leverage and a clearing of overextended positions.

When accompanied by stable or rising prices, it often points to accumulation by long-term holders rather than short-term traders. That combination can create a foundation for renewed upward momentum once liquidity returns to the market.

A Constructive Setup for XRP

According to the analysis shared, the current structure may favor XRP if new capital flows into the market. CryptosRus explained that “if new liquidity comes in, this setup could easily flip into the next leg up,” pointing to the conditions that typically precede bullish moves, including low leverage, strong spot demand, and short sellers caught in unfavorable positions.

The pattern aligns with the behavior observed earlier in the year, when a similar reset in open interest set the stage for an extended advance. At that time, once traders re-entered the market and open interest began to climb again, XRP’s price responded with significant strength.

While no outcome is guaranteed, the data suggest that XRP’s current position may be constructive. Open interest levels near historical lows combined with a resilient spot price create conditions that could support a continuation of the longer-term uptrend if buying pressure intensifies.