The Open Interest (OI) of XRP — the total value of outstanding futures contracts — has recently plummeted from an all-time high of $1.5 billion to $530 million, wiping out a large number of leveraged traders in the process.
However, OI is now rising again along with prices, indicating a return of speculative activity and risk appetite, potentially setting the stage for increased volatility.
Funding Rate and Market Sentiment
During the correction, the funding rate fell to negative levels, indicating excessive short positions and triggering short selling. Currently, funding is at a neutral level, showing a temporary balance between buyers and sellers.
However, short positions continue to rise while funding remains low — a combination that often creates upward momentum if prices remain stable or increase.
Taker data points to absorption
The Binance Taker Buy/Sell ratio is at 0.91, meaning that selling pressure in the market is dominant. Retail traders are heavily shorting, but despite this pressure, XRP prices remain stable.
This suggests that buyers may be absorbing the aggressiveness of sellers, a classic accumulation signal that could precede a breakout.
Final assessment: Is a bullish trend forming?
The latest Binance data paints a picture of a market where active sellers are being quietly subdued. With Open Interest rising, shorts increasing, and prices showing resilience, XRP may be in the early stages of a bullish breakout — especially if this quiet accumulation continues.
