According to the latest on-chain data, open interest for XRP has returned to a low level similar to what was seen in May 2025. Below are the possible repercussions for the price of XRP.
Derivatives activity is witnessing a significant decline – what does this mean?
In a Quicktake post on the CryptoQuant platform, on-chain analyst PelinayPA I searched On the fundamental activity within the XRP derivatives market and how this could impact the price of the altcoin in the coming weeks.
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The analyst report is centered around the results obtained from the open interest metric, which tracks the total US dollar amount of cryptocurrency derivative contracts (XRP, in this case) that are open and not settled at a given point in time.
According to PelinayPA, the measure of open interest has fallen to a level as low as the level seen in May 2025. Interestingly, this latest OI decline coincides with an XRP price of around $2.50, a much higher valuation than what was maintained during the previous OI decline.
Typically, a decline in the open interest of a cryptocurrency indicates the forced removal of speculative or over-leveraged positions from the market, leaving only the strongest hands to rule the market.
After the OI bottomed in May 2025, there was a significant increase in trading volume, pushing the price as high as $3.50. As open interest declines to a level similar to that of May, it is possible that history will repeat itself, and the price of XRP could begin another upward surge.
Key XRP areas to watch out for
In order for the XRP rally to remain within realistic possibilities, PelinayPA has directed attention towards two important price ranges to watch. First, the analyst started with the important support area, which is the $2.20-2.40 price range. According to the analyst, this support area acts as a short-term buy zone, which will be crucial in keeping the token in an uptrend.
A breakout of the support level between $2.20 and $2.40 could trigger a short-term sell-off up to $1.85, where the next major support for XRP price lies. In a scenario where this “major support” fails, the altcoin could fall as low as the major psychological lower bound of $0.60 to $0.70.
Considering the most likely bullish scenario, a condition must be met for the price of XRP to see a rise. First, a sustained increase in open interest of around 25% for several days would confirm the beginning of a new movement.
If this happens, investors could see a breakout above the first resistance level within the $2.80-$3.00 range, strengthening the bullish momentum. Also, a break above $3.30 to $3.50 could trigger a price discovery phase, where XRP price rises towards $4.20 to $4.50.
As of this writing, XRP is worth around $2.61, reflecting a jump of more than 2% in the past day.
Featured image from iStock, chart from TradingView
The post XRP Open Interest Returns To May 2025 Low — New All-Time High Soon? first appeared on Investorempires.com.
