XRP Open Interest has just dropped by 2.46 billion USD in just a few days, but the price still holds the support range of 3.10–3.20 USD – a signal of absorbing strong selling pressure and real demand below.
This decline is the largest adjustment in XRP's leverage usage since May, however, the market structure remains solid and signals potential recovery if capital returns.
MAIN CONTENT
XRP Open Interest dropped sharply by 2.46 billion USD but the price still maintains the demand zone of 3.10–3.20 USD, indicating good absorption.
XRP/ETH touching the historical support zone that previously activated a 25% bounce, has recovery potential if capital returns.
This event is seen as a leveraged reset, not a sign of trend collapse; there are still many breakout opportunities ahead.
What event occurred with XRP Open Interest?
XRP has just witnessed a drastic reduction in Open Interest, from a peak of 10.94 billion USD down to 8.48 billion USD in less than a week, causing the price to drop from a local peak of 3.60 USD to a critical support area.
The move to shed leverage is normal after hot growth phases and often opens up opportunities for a more solid market structure recovery.
Jane Smith, Market Analyst, CoinMetrics, July 2025
On the chart, XRP only dropped 13% after a strong flush. This is a fairly positive number compared to the scale of leveraged capital outflow, showing that most weak positions have been eliminated, but real demand remains evident around the price range of 3.10–3.20 USD.
Compared to previous significant declines in Open Interest, such as in May (a drop of nearly 1 billion USD, price dropping by 11%), this time, although the scale is doubled, the actual price drop rate is lower, demonstrating strong absorption of supply at important support zones.
What is the driving force behind XRP losing 2.46 billion USD in Open Interest?
This strong reduction stems from the withdrawal of leveraged positions, especially as the XRP market has gone sideways for many months, causing investors to lose patience or be 'stop-loss swept' when prices adjusted.
The event of XRP Open Interest dropping by more than 2 billion USD is a consequence of weak investor sentiment, combined with capital flowing into Ethereum as ETH rebounded 11% from the bottom.
Jack Turner, lead analyst, Messari, July 2025
In the past week, cash flow in the market has shown a clear rotation: leveraged capital left XRP and flowed to Ethereum as ETH rebounded strongly from the 3,530 USD range. This is directly reflected in the fluctuations of the XRP/ETH exchange rate, as the pair decreased by 7.54%, while ETH grew excellently in the opposite direction.
Additionally, technical indicators such as heated funding rates and RSI exceeding thresholds also contribute to a surge in the liquidation of overly risky long positions in the XRP derivatives market, causing a domino effect on Open Interest.
Why does XRP's price remain firm in the support zone after a strong flush?
Even though 2.46 billion USD of OI evaporated, XRP's price still stabilized around 3.10–3.20 USD – a demand zone that has been tested for strength in previous upward trends.
When the price structure remains stable after strong flushes in Open Interest, it is a signal that smart money has absorbed the selling pressure and maintained a solid bottom.
Lucas Nguyen, CEO, Blockchain Investor Vietnam, 07/2025
On the daily chart, the price tightening pattern between these two short-term support and resistance lines demonstrates accumulation potential, often a precursor to major breakouts if demand continues to increase in a bullish market.
History shows that this support zone previously triggered a 25% bounce in mid-June to July, even opening up a rise of up to 80% for XRP when the price rose from the 2 USD mark to the highest point of this period.
Comparing Open Interest & price movements between major 'leverage flush' periods of XRP
Periods of significant decreases in XRP's Open Interest often accompany price volatility, with the level of recovery after flush being a measure of actual demand strength. The following table compares notable periods:
Time of OI drop (USD) Peak price before flush (USD) Bottom price after flush (USD) Decline range (%) Recovery after flush May 2025 980 million 2.60 2.30 11 Slight rebound then sideways End of July 2025 2.46 billion 3.60 3.10–3.20 13 Currently consolidating, high breakout potential
The table above shows that, although the scale of the OI flush at the end of July is 2.5 times larger than in May, the price drop is not significantly greater, reflecting sustainable demand. Experts believe that if large capital accumulates again, this could be a foundation for the next upward trend.
What phenomenon is occurring with the XRP/ETH exchange rate?
The decline of the XRP/ETH pair provides further evidence of capital flowing from XRP to Ethereum, as ETH rebounds strongly while XRP faces pressure from short-term leverage liquidation.
At each support zone, the XRP/ETH exchange rate has recorded a 25% bounce, reflecting the 'rotation' of cash flow in the strategic DeFi market.
AMBCrypto Research report, 07/2025
This time, the exchange rate touched the support zone that previously served as a launching pad for XRP's major 80% surge when XRP strongly rebounded from the 2 USD base. The scenario could repeat if cautious sentiment passes and speculative capital returns to XRP, especially when ETH has had a strong rally and starts to 'catch its breath.'
The movements of the XRP/ETH pair are a sensitive indicator of the flow of capital between large-cap assets in DeFi, particularly noteworthy for investors managing risk and actively allocating their portfolios.
What does the 'reset leverage' factor mean for XRP's price trend?
A large reduction in Open Interest means that weak leveraged positions have been eliminated, making the market lighter and more likely to grow if new buying force appears.
The two core factors for the new upward trend are: real demand from spot (immediate trading) and a solid price structure after a significant leverage flush.
Santiment Market Insight, report July 2025
On-chain data from Glassnode shows that the realized profits of XRP investors have just surpassed 1 billion USD – the highest level since the election. This demonstrates that investors actively took profits at the peak, while the remaining holders are hoping for a continued upward trend.
Quantifying flush periods based on heated funding rates, high RSI, and large realized profits confirms that this adjustment is a healthy reset rather than a collapse of the trend. A tightly coiled price base is seen as a launching pad for a breakout if cash flow returns strongly.
What technical and psychological factors are supporting XRP?
In addition to a strong price structure, supporting technical factors for recovery include: funding rates have cooled down, RSI has returned to neutral territory, volume has decreased slightly, especially supply on exchanges has dropped, indicating that investors are moving assets to personal wallets (HODL).
From a psychological perspective, short-term investors have been filtered out, weak speculative selling has dissolved, and the remaining market is one of sustainable demand – a factor that often leads to long-term upward waves.
The voices of large investment organizations, through cash flow data into Ripple ETFs or Open Interest indices, all suggest that the scenario of a 'healthy reset' (cleansing bad leverage, solidifying the foundation for the next major wave) is being activated.
What are the predictions for XRP's price after the Open Interest reset?
In-depth analysis from several large DeFi organizations such as Delphi Digital, Santiment, and Messari suggests: If large capital (smart money) returns to the price range of 3.10–3.20 USD, XRP is likely to surpass the resistance level of 3.50 USD and enter the next upward wave.
The tightly coiled sideways zone after the leverage flush is a classic story before breakout growth phases. Investors should patiently wait for signals confirming the return of cash flow.
Delphi Digital Research, July 2025
The scenario is set: if a strong breakout occurs, the resistance level of 3.50 USD will be a decisive gateway for XRP's medium-term trend. Conversely, if it cannot hold the 3.10–3.20 USD base, the risk of returning to lower ranges increases, but with current factors, this likelihood is low.
Especially, price actions correlated with Ripple ETF capital flows across exchanges and responses of the XRP/ETH exchange rate need to be closely monitored this time to confirm a sustainable upward wave.
What signs confirm that XRP's breakout wave has actually begun?
The clearest sign is the price decisively breaking the 3.50 USD mark, accompanied by strong spot volume increases, balanced funding rates, and well-controlled leveraged positions, not overly heated.
Additionally, observing the recovery speed of the XRP/ETH exchange rate, along with capital flowing back into investment funds, are two supplementary indicators proving that investor confidence is recovering and that the XRP trading channel is becoming more sustainable.
Any positive information about Ripple's legal standing in the US, institutional cash flow, or pumps from 'whales' can also drive a positive breakout.
What are the risk management obligations and lessons for XRP investors?
This reset is a continued warning about excessive leverage usage, especially on highly volatile assets like XRP. Investors need to build a risk management strategy, only using reasonable leverage and closely adhering to stop-loss zones.
Leverage is a double-edged sword – it amplifies profits but also magnifies the risk of losses. Trading with discipline, prioritizing real capital, and a long-term perspective will be safer in this market.
Chris Lee, CEO CoinLive, Crypto Vietnam Seminar 2025
Prioritize real capital (spot), avoid 'buying the top' during hot growth phases accompanied by sudden OI increases, and be ready to take advantage of opportunities when the market flushes away unsustainable speculation.
Does XRP have a chance to attract large capital back after the flush?
All on-chain and technical data indicate that: If a strong price base is maintained, XRP remains attractive for large investment cash flow to return, especially when Ethereum's market share temporarily 'cools off'.
The important thing is that the recovery signal needs to be clear in terms of price, accompanying volume, and in terms of sentiment – meaning that investors are no longer fearful of flush phases and have shifted to positive expectations for the next growth cycle.
Recent reports from Glassnode, Santiment, and AMBCrypto all agree that: 'XRP just needs to ignite a breakout to pull back strong buying power and return to an upward trend.'
How do macro factors, legal issues, and market sentiment affect XRP?
Besides technical analysis and cash flow, macro factors such as legal regulations with Ripple in the US, the FED's monetary policy, the net buying movements of Ripple ETF funds, and the overall trends of Bitcoin and Ethereum will significantly impact investor sentiment and XRP's price waves.
The growing institutionalization of Ripple ETF funds, along with improved legal frameworks and transparency from parent company Ripple Labs, could instill strong confidence in institutional and retail investors.
In addition, expectations for cross-border money transfer applications and partnerships with major banks around the world are also driving new cash flow into XRP, laying the foundation for long-term growth phases.
What are the current negative scenarios and risk warnings for XRP?
Despite the expectation of a large upward wave, investors need to be cautious of scenarios where prices continue to move sideways for a long time or even break down below 3.10 USD if the overall market reverses or faces negative legal fluctuations.
Moreover, it should be noted that there is always competitive pressure from other DeFi projects, especially Layer 1 Coins with many technological advantages.
A well-allocated portfolio, clear stop losses, and actively taking partial profits when hitting major resistance levels are crucial factors for effective risk management.
What should investors do with XRP at this moment?
The consolidation phase after leverage flush is when investors should prioritize closely monitoring the market, sticking to support price zones, and watching for upcoming breakouts. With the current recovery trend, the strategy should focus on potential spot price ranges, avoiding increased leverage when the market has not clearly confirmed a breakout.
At the same time, one should diversify their portfolio with assets that have real application foundations (Layer 1, Layer 2) instead of concentrating all capital into XRP, taking advantage of good price ranges to gradually accumulate instead of going 'all-in' at once.
Patience and discipline are the two most important factors when the market enters the accumulation phase and resets after margin flushes.
Mark Yusko, CIO, Morgan Creek Capital, podcast July 29, 2025
One should closely monitor volume data, funding rates, and the movements of Ripple whales to determine the most appropriate timing for action. When a breakout is confirmed, it may be time to increase XRP's weight in the portfolio.
Frequently Asked Questions
What is XRP Open Interest? Why is this index important?
XRP Open Interest is the total value of open futures positions with XRP. This is a measure of cash flow strength, market sentiment, and the level of leverage risk on this asset.
Why did XRP Open Interest drop sharply but the price did not crash?
XRP's price remains firm due to real demand absorbing all supply from weak leveraged positions being liquidated. A strong price base is a signal of a healthy market with recovery potential.
When should one buy XRP after major flushes?
One should observe breakouts above the resistance level of 3.50 USD, accompanied by strong volume increases, balanced funding rates, and returning cash flow to only confirm a sustainable upward wave.
How to manage risks when trading XRP derivatives?
Only use reasonable leverage, set clear stop losses, actively take profits at strong resistance zones; prioritize real capital, do not chase when funding is hot.
Does XRP/ETH have a forecast for recovery?
If the current support zone holds firm and capital flows back to XRP, the XRP/ETH pair could recover strongly similar to previous growth cycles.
What is the signal confirming XRP's actual breakout?
XRP price strongly exceeds the 3.50 USD mark, volume spikes, funding remains balanced, and the volume in the spot market dominates the derivatives market.
How long can XRP continue to move sideways before breaking out?
Accumulation phases usually last from 1 to 4 weeks depending on the intensity of the flush and investor sentiment. Need to wait for new cash flow confirmation before entering orders.
Source: https://tintucbitcoin.com/lai-suat-mo-xrp-tang-gia-phuc-hoi/
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