XRP Futures Cooloff: Binance OI Declines 37% From Peak

Data shows the XRP Open Interest on cryptocurrency exchange Binance has seen a significant drop recently, a sign traders are repositioning.

XRP Binance Open Interest Has Dropped To $1.1 Billion

As pointed out by an analyst in a CryptoQuant Quicktake post, XRP traders on Binance have closed off futures market positions recently. The indicator of relevance here’s the “Open Interest,” which measures the total amount of derivatives positions related to XRP that are currently open on a given exchange.

When the value of the metric goes up, it means users are setting up fresh positions on the platform. Generally, the total leverage in the sector increases when new positions pop up, so this kind of trend can lead to the asset’s price behaving in a more volatile manner.

On the other hand, the indicator observing a decline suggests traders are either closing up positions of their own volition or getting forcibly liquidated by the exchange. The cryptocurrency may become more stable following such a trend, due to the reduced leverage.

Now, here is a chart that shows the trend in the XRP Open Interest for the largest digital asset exchange by trading volume, Binance:

As displayed in the above graph, the XRP Binance Open Interest saw a sharp surge between late 2024 and early 2025, implying the price surge was accompanied by a wave of speculative positioning from the investors.

As bullish momentum cooled off, mass liquidations took place and investors started pulling back on their positions, leading to a plummet in the indicator. From the chart, it’s visible that the metric remained at its lows until the rally in July.

This price surge was once again accompanied by a burst of speculative interest in the XRP market, but the Open Interest spike lasted only briefly as another deleveraging event soon followed.

At its peak in July, the metric hit the $1.76 billion mark, but today, it has come down to $1.1 billion, implying a significant decline of over 37%. Though, while the drawdown has been steep, the indicator’s current value is still high when compared to the past.

“The stabilization of OI near $1.1 billion after the peak, along with the price’s decline from its highs, indicates a repositioning phase,” explains the quant. “Leveraged positions remain in the market, but at a lower level than during the July/August peak.”

Where the XRP Open Interest heads next may be interesting to watch, as it could have a direct impact on the stability of the market. A surge from here without a price rally, for instance, would make traders more vulnerable to a long squeeze.

XRP Price

XRP has enjoyed a price jump of more than 3.5% over the last 24 hours that has taken its price to the $2.93 level.