XRP OI Logs Dramatic 59% Drop
Analysis
Price Impact
HighThe dramatic 59% drop in open interest (oi) and the fall in funding rates from 0.01% to 0.001% indicate a significant reduction in speculative activity and a fading of bullish conviction among traders. this suggests a loss of momentum and potential for price weakness.
Trustworthiness
HighThe analysis is based on data from glassnode, a highly reputable on-chain analytics firm, which provides reliable insights into derivatives and market structure.
Price Direction
BearishThe article explicitly states that 'bullish conviction is fading' and the 'market paused in its bullish momentum.' a significant portion (41.5%) of xrp supply is in loss, indicating a 'top-heavy and structurally fragile market dominated by late buyers.' this combination points to increased downside risk or prolonged consolidation.
Time Effect
ShortThe drop in oi and funding rates reflects an immediate shift in market sentiment and speculative interest. while the structural fragility could have longer-term implications, the flush-out itself typically manifests in short-term price adjustments and consolidation.
Original Article:
Article Content:
Cover image via www.freepik.com Read U.TODAY on Google News According to data provided by Glassnode, XRP’s futures open interest (OI) has fallen from 1.7 billion XRP in early October to 0.7B XRP. This marks nearly a 60% drop. Advertisement This is the total number of open contracts on XRP futures. A high OI usually indicates that traders are heavily speculating on price movement. A large reduction in open contracts means many traders have closed positions. This is sometimes that Glassnode as a "flush-out". HOT Stories 'True Currency': Elon Musk Makes Major Bitcoin Statement Morning Crypto Report: Vitalik Buterin Issues Zcash (ZEC) Warning, XRP Teases 69% Price Rise, $100,000 BTC Is Real in 2025: Bollinger Bands Banned GPUs Help North Korea Expand Crypto Heists How Low Will Bitcoin Price Drop in 2025? Meanwhile, the funding rate, which is what traders pay or earn when holding leveraged positions in perpetual futures, has dropped from 0.01% to just 0.001%. Advertisement A high positive funding rate usually shows bullish sentiment since traders are paying to stay long. Hence, a drop to near zero shows that bullish conviction is fading. "Turning point" According to Glassnode, Oct. 10 was a turning point, where speculators became less aggressive in betting XRP would go higher. Essentially, the market paused in its bullish momentum. The share of XRP supply in profit has fallen to 58.5%, the lowest since Nov 2024, when the price was $0.53. Today, despite trading four times higher ($2.15), 41.5% of the supply (roughly 26.5 billion XRP) sits in loss. This is a "clear sign" of a top-heavy and structurally fragile market dominated by late buyers, according to Glassnode. #XRP News