A quiet shift is happening beneath XRP’s price charts, one that could mark the beginning of a new momentum phase. In recent weeks, the XRP futures market has seen a dramatic contraction in open interest, signaling that a major wave of leveraged positions has just been flushed out.
Historically, such resets have preceded sharp market reversals or renewed bullish breakouts, especially when paired with strong spot demand and improving liquidity conditions.
According to crypto market analyst Chad Steingraber, XRP’s open interest has just bottomed out, and that could be the prelude to something much bigger.
The Sharp Reset in XRP Derivatives
Open interest (OI) measures the total value of outstanding futures contracts and is one of the best indicators of speculative activity in the crypto market. When open interest rises rapidly, it usually means traders are piling in with leverage, often amplifying both gains and losses. Conversely, when open interest collapses, it often signals mass liquidations or widespread position closures, a “cleansing” of the market.
Open Interest XRP just bottomed out…
We’re ready to rock… https://t.co/AamHXHEIkL pic.twitter.com/eolAs5AEnQ
— Chad Steingraber (@ChadSteingraber) October 21, 2025
Recent data shows XRP open interest dropped to about $3.49 billion, with the token trading near $2.36, according to derivatives market analytics platforms. This represents a steep reduction from the recent peak near $12 billion earlier in the quarter. The contraction reflects an aggressive shakeout in both long and short positions, leaving the market structurally lighter and more balanced.
Why the Bottoming of Open Interest Matters
Periods of low open interest are often misunderstood. While some view it as a sign of waning interest, experienced traders interpret it differently — as the calm after a storm. When leverage is drained from the market, volatility caused by forced liquidations tends to decline, and price action begins to reflect organic demand rather than speculative excess.
This current environment could therefore provide the foundation for a more stable and sustained rally. With fewer leveraged players left to trigger cascading liquidations, XRP’s next leg upward would likely be built on actual spot buying and institutional demand rather than short-term speculation.
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Market Dynamics: The Stage for a Rebound
The futures reset also coincides with XRP’s strengthening macro backdrop. The asset continues to see increased institutional interest following Ripple’s expanding global partnerships and RLUSD’s integration into major financial discussions.
XRP’s spot trading volume has remained relatively steady even as futures activity cooled, a sign that long-term holders are quietly accumulating while leveraged traders retreat.
As liquidity consolidates and funding rates stabilize, conditions could favor renewed upward movement. Analysts are now watching closely for fresh capital inflows, which often follow market flushes like this one.
What Comes Next for XRP
If historical patterns repeat, XRP’s open interest bottoming could mark the end of a speculative downcycle and the beginning of a new accumulation phase. Traders will be closely monitoring whether open interest begins to rise again — but this time, alongside a steady price uptrend rather than wild swings.
Chad Steingraber’s observation captures the prevailing sentiment: the market may have just reset the board, setting XRP up for its next major move. With leverage cleansed and momentum rebuilding, the stage appears set for XRP to “rock,” as Steingraber put it — but this time, with stronger foundations beneath it.
XRP’s open interest bottoming is more than a data point; it’s a psychological and structural turning point. The flush-out of leverage resets trader sentiment and offers the market a clean slate.
Whether this leads to a sharp rally or a gradual climb, the conditions now favor a more sustainable growth path. For patient investors, this could be the moment that defines XRP’s next chapter.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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