- XRP open interest drops to May lows, signaling possible bullish reversal.
- Strong holders maintain price stability around $2.6 despite leverage flush.
- A breakout above $3.30 could trigger a new rally toward $4.50.
Ripple — XRP , traders are watching something familiar unfold again. The token’s open interest in Binance has fallen back to the same lows seen in May 2025. Back then, that reset triggered a sharp rally from $0.70 to $3.50. Now, with XRP holding near $2.60 despite the drop in leverage, some traders believe another major breakout may be forming. The stage looks set for an explosive move once new liquidity arrives.
Derivatives Activity Takes a Breather
According to on-chain analyst PelinayPA , XRP’s open interest has returned to levels that previously marked a turning point. The metric tracks the total value of active derivatives contracts that remain unsettled. A sharp drop in this figure usually signals that over-leveraged positions have been flushed out. What remains are traders confident enough to hold through volatility.
Back in May 2025, the same situation unfolded. Open interest bottomed, volume surged, and XRP skyrocketed to $3.50. This new reset, however, comes with XRP trading far higher than before. That difference matters because it shows strength in the underlying demand. Even after leverage cleared out, prices stayed firm around $2.50–$2.60.
A market that holds steady through liquidation often reflects conviction among long-term holders. These investors typically absorb short-term selling pressure, creating a solid base for the next move. If new buyers step in, this environment could quickly turn bullish again.
Key Levels That Could Shape the Next Move
PelinayPA points to a few price zones worth watching. The support area between $2.20 and $2.40 acts as a crucial short-term buy region. Holding above this range keeps XRP’s uptrend alive and limits downside risk. Losing that support could push the token lower toward $1.85, where another base may form. In a stronger scenario, traders should look for a sustained 25% rise in open interest over several days.
That kind of increase would signal renewed participation and likely confirm a fresh bullish phase. A breakout above $2.80–$3.00 could then open the path to higher resistance near $3.30–$3.50. Once XRP clears that level, analysts expect a potential price discovery phase to begin. From there, momentum could extend toward $4.20–$4.50, based on current projections.
For now, XRP trades around $2.61, gaining over 2% in the past day. The market may be quiet on the surface, but the setup beneath looks promising. Low leverage, strong spot demand, and steady hands often precede major rallies. If history offers any hint, XRP might once again be preparing for a vertical move.
