XRP Open Interest Hits Lowest Since 2024 as Traders Cut Leverage

XRP open interest on Binance has dropped to its lowest level since 2024, falling to $369.6 million. According to data from CryptoQuant analyst Arab Chain, this decline indicates that market participants are closing positions and reducing leverage use. The recent U.S. Federal Reserve's monetary policy decision has made traders more cautious, leading them to cut XRP exposure.

Arab Chain noted that the drop in open interest is not a price indicator, but rather an indicator of participation intensity and changes in leverage willingness. He also pointed out that reduced leverage can affect market structure, reducing the risk of forced liquidations and sharp price swings, but it may also be seen as a sign of weak demand for XRP positions under current market conditions.

XRP is currently trading near $1.08, up about 1 percent over the past 24 hours, but the overall chart structure remains dominated by sellers. Technical analysis suggests that bearish momentum remains dominant on the daily chart, with short-term support between $1.07 and $1.08 being a key area of interest.