XRP has entered a critical phase after recent price movements pushed it into a long-term support zone. Market data reveals significant shifts that could influence short-term price behavior and signal potential opportunities for leveraged traders.
Recent chart analysis by Cryptoinsightuk (@Cryptoinsightuk) shows the cryptocurrency testing key support. Open interest, funding rates, and spot volumes currently display notable trends, and the analyst described the price action as “extremely interesting.”
EXTREMELY interesting PA for $XRP.
Open Interest rising significantly as Funding flips heavily negative and Premium also continues to get more negative.
This indicates the move down is being artificially created by leveraged players.
We also see a rise in Spot volume.
This… pic.twitter.com/ZXCfHSoSLF
— Cryptoinsightuk (@Cryptoinsightuk) January 25, 2026
Open Interest and Funding Rates Signal Market Pressure
On the shorter-term charts, XRP has seen a sharp rise in aggregated open interest. This increase coincides with heavily negative funding rates and a declining premium.
According to Cryptoinsightuk, these metrics suggest that leveraged positions are amplifying the downward price move. Open interest stands around 559 million coins, indicating substantial engagement by derivative traders.
The funding rate has turned significantly negative at -0.0188, reflecting increased pressure from traders holding short positions on leveraged platforms. The premium is also declining, which aligns with the negative funding. Both signals highlight that large, leveraged players may be influencing short-term price action rather than natural market demand.
Spot Volume Rises Alongside Price Consolidation
In contrast to derivatives activity, spot volume is rising. Over the past trading sessions, XRP spot volume increased to over 2.4 million coins on Binance Futures, showing that real buying pressure is building as prices approach a long-term support zone. This growing spot activity provides a foundation for a potential bounce once the leveraged-induced selling abates.
The rising open interest alongside increasing spot volume indicates traders may be preparing for a reversal. Cryptoinsightuk highlighted that, while XRP could dip slightly further, a strong bounce is likely, potentially triggering a short squeeze as selling pressure eases.
Technical Support and Bullish Divergence
At the time of his analysis, XRP traded near $1.85, just above a support level established over the past year. The four-hour chart reveals a bullish divergence forming as the relative strength index (RSI) remains near oversold levels at 26.32 while price tests key support. This divergence suggests weakening downward momentum and potential for a rebound.
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The price-volume profile further reinforces the importance of the $1.82-$1.91 range. Historical trading activity indicates strong accumulation in this area, creating a technical base for price stabilization. Short-term liquidity pools also align with these levels, indicating that institutional and retail participants are likely to defend this support.
What’s Next for XRP?
XRP is at a critical juncture, supported by long-term technical levels while short-term derivatives indicate leveraged pressure. Rising open interest, negative funding rates, and increased spot volume paint a complex but actionable picture. A rebound is likely once the market absorbs the current selling pressure.
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 advised to conduct thorough 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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