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XRP Open Interest Crashes 50% Over The Weekend, What Does This Mean For Price?
XRP's futures open interest has dramatically fallen by over 50% in a single weekend, dropping to approximately $4.22 billion. This significant decline began around October 11, with a 38.7% decrease in open interest within 24 hours. Binance, the largest XRP derivatives exchange, experienced a 53.4% collapse in its open interest. This deleveraging coincided with a sharp weekend price crash for XRP, highlighting a shift towards caution and fear in the market. The current price recovery appears to be driven by spot buyers rather than leveraged traders. Traders who had shorted the market are likely being forced to buy back their positions. Technically, XRP is approaching a critical resistance zone at $2.65. A successful breakout above this level could lead to rapid price acceleration. This suggests the current rally may be more sustainable if spot demand continues. The market sentiment has clearly transitioned from high speculation to a more risk-averse stance.
