- XRP’s Open Interest fell sharply from nearly $3 billion to $1.8 billion within four days, signaling a large-scale derivatives unwind.
- Binance led the market contraction, with its XRP Open Interest dropping from $1.3 billion to $825 million, nearly half of the remaining total.
- XRP’s price broke critical $2.75 support, briefly dipping to $1.07, creating a long wick and triggering a widespread liquidation cascade.
XRP faced a severe liquidation cascade this week as its Open Interest fell from nearly $3 billion to $1.8 billion. The steep decline reflected intense derivatives unwinding following a sharp price breakdown below key support levels.
Massive Open Interest Decline Across Major Exchanges
Ripple’s (XRP) derivatives market experienced a swift contraction after traders rapidly exited leveraged positions. According to on-chain data, XRP’s Open Interest dropped from close to $3 billion on October 6th to around $1.8 billion within just four days.
Binance accounted for the largest portion of this decline. The exchange’s XRP Open Interest plunged from $1.3 billion to $825 million, illustrating the magnitude of the liquidation wave. With Binance now holding nearly half of the remaining global Open Interest, the exchange became the focal point of this deleveraging phase.
The swift reduction indicated that a substantial portion of leveraged traders were forced out of their positions amid rising volatility. The contraction signaled a market-wide clearing of speculative exposure as XRP’s futures market adjusted to lower leverage levels.
Price Breakdown Triggers Aggressive Liquidations
The series of events started on October 10th, when XRP fell through its key $2.75 support level, causing a wave of forced liquidations to occur. The sudden breakdown sent the price on a downward spiral to an intraday low of $1.07 before bouncing back somewhat to $2.37.
This violent move produced a long wick on the daily chart, a reflection of massive liquidation activity across major exchanges. The event wiped out billions in leveraged positions, creating one of the largest derivatives resets for XRP in recent months.
The market now faces a structurally weaker setup, with the $2.75 level shifting into strong resistance territory. While the liquidation cascade helped eliminate excess leverage, traders remain cautious as XRP consolidates within a lower range. The market’s recovery path will likely depend on renewed buying strength and stability in Open Interest levels.
