XRP experienced one of its sharpest derivatives market resets this month as billions in open interest were wiped out within days.
By Parth Dubey
Editor Kirsten Thijssen
Updated
2 mins read
XRP currently trades at $2.35, up over 6% in the last 24 hours, after an extremely volatile week that saw the asset plunge from $2.50 to $2.20. Despite the rebound, XRP remains down 25% over the past month and trades nearly 39% below its all-time high of $3.84.
According to data from CryptoQuant, the recent move represents a full-scale market reset, as speculative positions were purged across the board. Between October 6 and October 18, total Open Interest (OI) in XRP futures crashed 65.5%, falling from $2.9 billion to just $1 billion.
This represents a massive $1.9 billion in liquidations and capital outflow from the derivatives market. Meanwhile, Binance, the largest venue for XRP futures, bore the largest chunk of the wipeout as its OI plunged from $1.32 billion to $480 million.
XRP OI across all exchanges | Source: CryptoQuant
Interestingly, analysts at CryptoQuant describe the move as a long squeeze cascade, where the initial price drop triggered forced liquidations of overleveraged long positions, compounding sell pressure and driving the market lower in a feedback loop.
The 4-hour XRP chart reveals a falling wedge pattern, typically a bullish reversal formation. After testing the lower trendline near $2.20, XRP has begun to consolidate toward the upper boundary of the wedge, currently hovering around $2.35.
Immediate resistance lies at $2.50, a breakout above which could open the path toward $2.75 and $3.10. Meanwhile, support levels remain at $2.10 and $1.90; a breakdown below could reignite bearish momentum toward $1.70.
XRP price action with momentum indicators | Source: TradingView
On the other hand, momentum indicators are neutral with RSI at 44.48, indicating mild recovery potential. The MACD is flattening near zero, and CMF (+0.04) hints at slow capital inflow after heavy outflows.
CryptoQuant analysts call this a “market full reset,” indicating that the market now stands at a healthier baseline. Despite being at a major crossroads, XRP remains one of the best crypto to buy in 2025, gaining more than 300% in the past year.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
