XRP's open interest on Binance has dropped to levels last seen in May 2025, a technical reset that crypto analysts say could precede a significant price rally. The digital asset is trading near $2.60 as institutional accumulation continues and regulatory approvals loom, setting up conditions that historically have triggered major upward movements.
What to Know:
- XRP's open interest has fallen to May 2025 lows on Binance, eliminating excess leverage while strong holders maintain positions around $2.60
- Evernorth, backed by Ripple, has accumulated $1 billion in XRP and plans continued open market purchases through DeFi gains
- The SEC is expected to approve spot XRP exchange-traded funds following the U.S. government shutdown, with experts predicting stronger initial inflows than Ethereum ETFs received
Open Interest Reset Creates Technical Foundation
XRP's open interest on the Binance exchange has retreated to the same levels recorded in May 2025, according to crypto analyst CryptosRus. That earlier reset preceded a liquidation flush that drove the token to $3.50. The current setup shows open interest at similar lows while the price holds steady around $2.60, a divergence the analyst considers significant.
The metric indicates that leveraged positions have been cleared from the market.
Strong holders continue to maintain their positions without borrowed funds, CryptosRus noted in an analysis posted on X. "This means that leverage is gone while the strong hands are still holding," the analyst wrote, suggesting that fresh capital entering the market could trigger the next price leg higher.
Market rallies typically emerge when leverage decreases, spot buying pressure strengthens and short sellers face potential losses, according to the analyst's assessment. The current technical configuration matches those conditions.
New institutional demand has emerged through Evernorth, which launched as the largest XRP treasury company.
The entity has accumulated $1 billion worth of XRP with backing from Ripple, the blockchain company closely associated with the token. Evernorth has stated it will continue purchasing XRP on the open market using profits generated from decentralized finance activities, creating sustained buying pressure.
The Securities and Exchange Commission is expected to approve spot XRP exchange-traded funds once the federal government shutdown concludes. Steven McClurg, chief executive of Canary Capital, has projected that XRP ETFs could attract larger first-month inflows than the Ethereum ETFs recorded. The regulatory approval would provide institutional investors with direct exposure to XRP through traditional brokerage accounts.
Historical Patterns Suggest Parabolic Movement Ahead
Crypto analyst Ether has identified cyclical patterns that point toward what he describes as a "face melting" rally for XRP. The analyst drew parallels between current price action and the token's behavior in previous market cycles, suggesting most market participants remain unaware of the potential move.
XRP's structural patterns show striking similarities to its 2017 performance, according to Ether's technical analysis.
After rallying in 2017, the token's price was rejected at the 2013 all-time high level before retesting the 2014 all-time high, which had previously served as resistance. XRP then accumulated strength in that range before beginning a parabolic advance.
The same sequence is unfolding in the current cycle. Following strong gains in 2024, XRP was rejected at the 2017 all-time high and has since retested the 2021 all-time high level, which previously acted as resistance. The token is now in what Ether characterizes as a "power accumulation phase" in this price region. "Once it is complete, the next parabolic run will be inevitable," the analyst stated.
Open interest represents the total number of outstanding derivative contracts that have not been settled. When open interest declines sharply, it typically indicates that leveraged traders have exited positions, often through liquidations. This process removes weak hands from the market and reduces the likelihood of cascading liquidations during price moves. Lower leverage ratios generally create more stable conditions for sustained rallies, as price movements reflect actual spot demand rather than amplified derivative positions.
Closing Thoughts
XRP traded at approximately $2.63 at the time of analysis, showing gains over the prior 24-hour period according to CoinMarketCap data. The combination of reduced leverage, institutional accumulation and pending regulatory approvals has positioned the token for potential price appreciation, according to analysts tracking the market.