XRP’s $2.46B Open Interest flush sets stage for bullish rebound

Key Takeaways

XRP Open Interest saw a $2.46 billion wipeout, yet price is holding key demand between $3.10-$3.20, signaling strong spot absorption.

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On the 22nd of July, Ripple’s [XRP] Open Interest (OI) ripped to a record $10.94 billion after chopping sideways for months. 

But the momentum didn’t stick. OI just nuked to $8.48 billion, marking a $2.46 billion wipeout in under a week. That shakeout dragged XRP down 13% from the $3.60 local top.

And it wasn’t a fluke. XRP/ETH rolled down 7.54% as Ethereum [ETH] pulled a clean 11% bounce off its $3,530 base. The rotation was clear: Capital flowed back into ETH, leaving XRP exposed.

But here’s where it gets interesting. 

XRP/ETH just tapped the same support zone that triggered a 25% bounce last cycle between mid-June and mid-July. In fact, that move kicked off an 80% rally in XRP off its $2 base.

Moreover, that move aligned with XRP’s Open Interest spiking from $4 billion to $10 billion as leveraged longs piled in. If the flow returns, could the recent flush be more reset than rejection?

XRP Open Interest drop hits key demand zone

Ripple just logged its sharpest leverage flush since May. Back then, XRP Open Interest dropped $980 million from the $5.74 billion peak near the $2.60 resistance, triggering an 11% price dump.

This time around, despite a far steeper $2.46 billion unwind, XRP is only down 10%, signaling strong spot bid absorption and resilient underlying demand.

Backing that up, the daily chart shows XRP coiling between $3.10 and $3.20, holding steady in a key demand zone. In a bull market, this kind of compression pattern often front-runs a breakout move.

What’s more, the recent drop aligned with XRP/ETH rolling over, overheated Funding, stretched RSI, and Realized Profits spiking above $1 billion, marking the largest spike since post-election. 

The $2.46 billion XRP Open Interest flush was a textbook reset.

Structurally, XRP’s still holding firm, and XRP/ETH sits at bounce territory. If rotation flows back in, this could be the base for a breakout above $3.50.