XRP’s open interest has fallen by over 60% from its peak level. XRP prices are falling in tandem with the open interest; however, the prices did not experience the same level of intensity as the open interest. But the prices have risen above the 50-day moving average.
XRP open interest falls below $1 billion
The XRP open interest (OI) drastically dropped from as high as $2.6 billion to just above $900 million. A 60% drop in open interest indicates a significant decline in the derivatives markets. Specifically, when OI decreases, it shows that there are fewer open positions in the market, including both long and short positions.
The chart above shows a major drop that happened back in October 10 when the OI dropped drastically from $9 billion to just above $3 billion. Since then OI has been decreasing but it was not a deep drop as it was back in October.
XRP will rise above $2 once it breaks out
Despite the rapid drop in the open interest, XRP prices have recovered above the 50-day moving average while forming the apex of the falling wedge. Since july 2025, XRP has been trading inside a falling wedge, making lower highs and lower lows inside this pattern.
Although the prices crash inside this pattern, there will come a threshold point where XRP will break out from the falling wedge. XRP has just a few more rebounds inside the falling wedge before it breaks out upwards.
The bullish momentum needed to break out and push the prices higher seems to be already building behind the scenes. When observing the relative strength index (RSI), the line has been making higher highs and higher lows, as the RSI shows 50 on its scale.
Given that XRP follows the conventional breakout style, there is a high chance that the coin could increase by the height of the falling wedge at its widest. When this concept is applied to the chart, the XRP prices should rise above $2.
