XRP’s recent price action has tested trader patience. Sideways movement and muted volatility have dominated the chart, giving the impression of indecision. However, experienced market participants know that extended consolidation phases often mask important structural shifts.
In XRP’s case, derivatives data and liquidity behavior are offering early clues that the market may be preparing for a decisive move rather than prolonged stagnation.
That view was reinforced by market analyst Xaif, who recently shared his assessment on X, pointing to subtle but meaningful changes in XRP’s open interest dynamics. His analysis focuses not on headline price levels alone, but on how leverage, liquidity, and participation are interacting beneath the surface.
Despite short-term OI reset, $XRP continues to absorb liquidity without major long-unwinds. If OI begins expanding again with price reclaim above $2.10
the next leg could be explosive 🚀 pic.twitter.com/bgGM3m9utD
— Xaif Crypto🇮🇳|🇺🇸 (@Xaif_Crypto) December 28, 2025
A Healthy Open Interest Reset
XRP has undergone a short-term reset in open interest, a development that can easily be misread as bearish. According to Xaif, this reset did not come from aggressive long liquidations or panic-driven exits. Instead, it reflects a controlled reduction in excess leverage, allowing the market to cool without destabilizing prices.
This type of reset is often constructive. A decline in open interest alongside a steady price suggests that the market is clearing speculative froth while spot demand remains intact. Historically, such conditions have provided a cleaner foundation for renewed trend expansion.
Liquidity Absorption Without Structural Damage
Xaif highlights that XRP continues to absorb liquidity without triggering major long unwinds, which is a notable signal. Sellers have been active, but their pressure has not resulted in cascading liquidations or sharp breakdowns. This implies that buyers are consistently stepping in, preventing downside acceleration.
Larger participants are absorbing liquidity like this, typically during accumulation phases, especially when positioning ahead of anticipated volatility. While it does not confirm immediate upside, it significantly reduces the likelihood of a sudden collapse.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
The Role of the $2.10 Reclaim
From a technical standpoint, the $2.10 level has become a key area to watch. Xaif noted that a price reclaim above this zone, combined with a renewed expansion in open interest, would be a strong signal that traders are re-entering with confidence. In such scenarios, rising open interest alongside rising price typically reflects fresh participation aligned with the prevailing trend.
This combination often marks the transition from consolidation to impulse movement, as leverage begins to support, rather than suppress, price momentum.
Why the Next Move Could Be Fast
Volatility compression rarely lasts indefinitely. XRP’s current structure—normalized leverage, steady liquidity absorption, and clearly defined resistance—creates conditions where a breakout can unfold rapidly once triggered. If momentum returns above key levels, the market may find itself chasing price rather than gradually building positions.
For XRP traders, Xaif’s analysis underscores a critical point: the quiet phases are often where the groundwork for the most explosive moves is laid.
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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