According to the latest on-chain data, XRP open interest has returned to a low similar to that of May 2025. Below are the possible implications for the XRP price.
Derivatives activity sees significant dip: what this means
In a Quicktake post on the CryptoQuant platform, on-chain analyst PelinayPA dug into the underlying activity within the XRP derivatives market and how it could impact the altcoin’s price in the coming weeks.
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The analyst’s report revolved around results obtained from the Open Interest metric, which tracks the total USD amount of derivative contracts of a cryptocurrency (XRP, in this case) that are open and unsettled at any given point in time.
According to PelinayPA, the Open Interest metric has fallen to levels as low as May 2025. Interestingly, this latest dip in OI coincides with an XRP price of around $2.50, which is a much higher valuation than during the previous OI dip.
Usually, a decline in a cryptocurrency’s Open Interest indicates the forceful removal of overloaded or speculative positions from the market, leaving only the stronger hands to rule the market.
After the OI bottomed in May 2025, there was a significant increase in trading volume, pushing the price up to $3.50. Now that open interest has fallen to levels similar to May, history could very well repeat itself and the XRP price could begin another upward rally.
XRP Key Zones to Pay Attention To
To keep hopes of an XRP rally within realistic possibilities, PelinayPA focused on some key price ranges to watch. First, the analyst started with the important support zone, which is the $2.20-$2.40 price range. According to the analyst, this support zone serves as a short-term buy zone, which will be crucial to keep the token in an uptrend.
A break of the $2.20-$2.40 support could see a near-term sell down to $1.85, where the next major support for the XRP price lies. In the scenario where this “key support” fails, the altcoin could fall to the key psychological bottom of $0.60-$0.70.
Looking at the more likely bullish scenario, a condition would have to be met before the XRP price would see an increase. First, a sustained increase in open interest of around 25% for several days would confirm the start of a new move.
If this happens, investors could witness a break above initial resistance within the $2.80-$3.00 range, reinforcing bullish momentum. Also, a breakout above $3.30-$3.50 could trigger a price discovery phase, where the XRP price rises towards $4.20-$4.50.
At the time of writing, XRP has a valuation of around $2.61, reflecting an increase of over 2% in the past day.
Featured image from iStock, chart from TradingView