Beginning in January 2025, digital asset XRP has been experiencing a significant decrease in Open Interest (OI), a measure that tracks the total capital invested in open market positions. This loss of over $3 billion reflects hesitancy among traders and investors about XRP’s near-term prospects, especially amidst the prevailing market volatility and instability.
XRP Struggling with Declining Open Interest
A closer look at the data from Coinglass, an on-chain data analytics platform, reveals a sharp decline in XRP’s Open Interest since January 2025. While the digital currency saw a surge in Futures Open Interest to $7.87 billion around January 18, attributed to trading on notable exchanges like Binance, Bybit, and Bitget, it faced a steep downward trend thereafter.
The Decline of Futures Open Interest
In February, there was a notable drop in XRP’s Futures Open Interest, plunging to $5.94 billion, a dip of 24% from its January peak. Despite a slight uptick in the following days, the downward trend persisted, hitting a low of $3.01 billion by the end of February. At the time of writing, the OI is hovering around $3.22 billion, a reduction of over 50% amounting to a loss of roughly $4.62 billion in less than three months.
Moreover, Binance, one of the leading exchanges, also revealed a decrease in XRP’s Futures Open Interest. Starting the year on a high note at $1.62 billion, it currently stands at $619.8 million, marking a loss of more than $1 billion.
What Factors Contribute to the Decline in Open Interest?
Multiple influences might be fuelling this downturn in XRP’s Open Interest. The recent market instability and ensuing price correction for the digital currency have stirred doubts about its future. XRP’s current trading price is $2.28, reflecting a drop of 15% over the last month. The noticeable decrease in OI implies that traders are choosing to close their existing positions rather than opening new ones, a sign of reduced trading activity and dwindling interest.
Signs of Hope: Prediction for a Price Surge
Despite the challenging conditions, an analyst operating under the alias ‘Steph in Crypto’ on X (formerly Twitter) has a more optimistic outlook. Based on his analysis of a Golden Moving Average Convergence Divergence (MACD) Cross on the XRP price chart, he predicts a price surge above $10 in the near future.
The analyst draws a comparison between the XRP price action in 2024, marked by a decrease followed by a rally, and the current scenario in 2025. He suggests that if the same pattern unfolds, XRP may experience a breakout after its current consolidation phase.
How Accurate are These Predictions?
Predicting cryptocurrency trends is a complex task, requiring a deep understanding of market dynamics and thorough analysis. While ‘Steph in Crypto’ provides an optimistic prediction for XRP, investors should always conduct their research before making decisions.
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