A discernible increase in open interest on coinbase suggests new positions are being opened, particularly by american investors. this divergence with a flat/declining price often precedes an expansion of volatility, indicating a 'spring being loaded' for future price movement.
The analysis is balanced, utilizing technical indicators (moving averages, rsi, resistance levels) and market data (open interest, liquidation data, long/short ratios, funding rates) to provide a nuanced perspective on potential price action.
While rising open interest signals potential future volatility, current technicals for xrp show lower highs, significant overhead resistance, weak momentum, and neutral-to-bearish rsi. the market is in a phase of consolidation and 'early positioning' rather than a clear trend reversal, with bulls not yet ready.
The increased open interest indicates that a significant move could be brewing in the short term, as 'the spring is being loaded' and new positions are being established, leading to potential volatility expansion.
Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News XRP's market positioning Bulls are not ready Advertisement With a discernible increase in open interest on Coinbase , XRP is subtly displaying a signal that usually matters more than transient price noise. Although that particular detail by itself does not ensure a rally, historically speaking, it is also not something to disregard, particularly considering Coinbase’s special place in the market. XRP's market positioning The context comes first. With lower highs and significant overhead resistance from important moving averages, the price of XRP is still grinding inside a wider declining structure. The price has not successfully recovered the mid-range levels lost during the October breakdown, momentum is weak, and the RSI is hovering in neutral-to-bearish territory. The chart does not shout immediate breakout when viewed alone. With sellers still relying on rallies, it appears more like consolidation following distribution. XRP/USDT Chart by TradingView On Coinbase, open interest is increasing while the price is either flat or slightly declining. This divergence typically indicates the opening of new positions as opposed to the closing of existing ones. This frequently comes before the expansion of volatility. Even though the market’s direction has not been determined yet, the spring is being loaded. HOT Stories Morning Crypto Report: World's Highest IQ Holder Turns to XRP, Cardano on the Verge of 40% Surge, Shiba Inu (SHIB) Loses $110 Million in Just 24 Hours Schiff Jumps on Saylor's McDonald's Pic Crypto Market Prediction: XRP's Engines Are Hot Enough for a Rally, Ethereum (ETH): One More Price Surge Attempt, Shiba Inu (SHIB) Does Not Want to Stop at $0.000008 Important Date for XRP Holders Revealed, Bitcoin OG Bets $392 Million on Ethereum, Dogecoin Jumps 61% in Volume — Crypto News Digest Bulls are not ready Not everyone is bullish, though. Only when combined with spot demand or directional conviction can rising open interest spur upside. Liquidation cascades frequently result from leverage building without follow-through, particularly in assets like XRP that have a history of penalizing late longs. According to current liquidation data, longs are suffering more losses than shorts. Advertisement You Might Also Like Sat, 12/13/2025 - 05:15 XRP at Risk of Support Vacuum That Can Erase 65% of Price, Bollinger Bands Warn By Gamza Khanzadaev Another warning sign is that long/short ratios and funding rates do not yet indicate extreme optimism. Although that is beneficial for sustainability, it also indicates a lack of market commitment. Rather than a verified trend shift, this appears to be early positioning. The increase in Coinbase open interest indicates that XRP is once again on the U.S. radar. However, it is still a setup rather than a breakout in the absence of a clear technical recovery and stronger spot inflows. Bears may be in serious danger if the price begins to move while open interest continues to rise. This turns into yet another leverage trap otherwise. Advertisement #XRP #Coinbase #XRP Price Analysis