XRP Open Interest Shrinks as Traders Reduce Leverage

XRP’s derivatives market is showing clear signs of contraction. The 90-day Open Interest change metric, which measures how total open positions have shifted over the past three months, reveals a broad reduction in leveraged exposure across major exchanges.

On Binance, open interest declined by approximately 7.7 million XRP over the period.

Bybit recorded an even larger drop of around 12 million XRP, marking one of the steepest reductions among major platforms. Meanwhile, Kraken saw open positions decrease by roughly 8.3 million XRP.

Taken together, these figures point to a coordinated unwind of positions across the XRP derivatives landscape.

What the Contraction Means

A widespread decline in open interest typically signals that traders are closing positions, either voluntarily or through liquidations. In this case, the 90-day contraction suggests that speculative leverage has been steadily reduced rather than abruptly flushed in a single event.

Importantly, falling open interest is not automatically bearish. It often reflects a reset phase following periods of excessive speculation. When leverage declines across multiple exchanges simultaneously, it indicates that frothy positioning is being cleared out of the market.

Reset Before the Next Move?

Lower open interest can reduce volatility and selling pressure tied to forced liquidations. It can also create a healthier foundation for new positions to build from more balanced levels.

Whether this contraction leads to renewed upside momentum or prolonged caution will depend on how quickly fresh capital returns to the derivatives market. If open interest begins to stabilize and expand alongside price strength, it could signal rebuilding confidence. If it continues to shrink, it may point to a more defensive environment ahead.

For now, XRP’s derivatives market appears to be in a cooling phase, not necessarily a breakdown, but a clear reduction in speculative intensity.

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