XRP trading has shifted to a lower gear as open interest fell to a one-year low. The token abandoned hopes for a breakout, despite the push from its social media community.
XRP trading is losing its liquidity, with open interest dropping back to levels from November 2024. The token slowed down after a period of high whale activity, where older large-scale holders rolled over their XRP to new enthusiastic buyers. However, XRP failed to break out to a new high, leaving the new buyers with unrealized losses.
XRP held at around $2.21, bouncing from local lows under $2 as of November 21. Trading volumes for XRP have also diminished over the past months.
XRP open interest diminishes on Binance
As the crypto market slowed down, most of the liquidity shifted to Binance. The exchange remains the chief venue for XRP, carrying over 7% of trading. The conditions on Binance show liquidity is shifting on the top coins, including XRP derivatives.
Binance trading conditions are signaling a shift in XRP activity. Open interest for XRP is near a six-month low of $1.4B on all exchanges. On Binance, XRP open positions fell from $1.7B to around $591M, with a recent low of $473M.
Liquidity flowed out of both long and short positions, as traders stayed away from a choppy market with no clear directional signal. XRP also lacks general directional conviction to sustain momentum for derivative trading.
The biggest decline in open interest happened as XRP fell below $2, but the rebuilding of positions may take longer. A combination of lower prices and low open interest signals traders are still waiting, and short-term activity may not be enough to sustain a price recovery.
XRP signals a potential downturn
XRP funding rates have also often turned negative on some exchanges, suggesting the bullish confidence is diminishing. Negative funding is a sign of selling pressure, potentially pointing to more downside for XRP.
On social media, XRP sentiment is more bearish from retail traders. XRP went through a period of whale distribution, with no signs of renewed accumulation by large traders.
In 2025, XRP showed hopes of an ETF launch, but the new instruments were delayed. XRP was among the prime candidates for an ETF, though Solana took the lead with new products.
XRP also passed the digital asset treasury company. Ripple itself announced plans for a $1B treasury, but the organization was already known for having large reserves of tokens. Additionally, the DAT may have been supplied in-kind, instead of relying on new XRP buying on the open market.
XRP mindshare is still 2.1% on social media, with a 21% rise in the past weeks. However, the token is still viewed as predominantly bearish until it discovers new sources of liquidity. The XRPL layer liquidity is also limited, as the platform only took a small share of DeFi activity.
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