Since its peak, Ripple’s XRP has been witnessing a steady decrease in Futures Open Interest (OI).
Coinglass, an on-chain analytics company, reported that on January 18, 2025, XRP’s Futures OI stood at $7.62 billion.
As of now, it has dwindled to $3.02 billion, edging close to the lowest point in 2025, reflecting a drop of over 50% from its peak.
Shift in Market Sentiment
The decline in OI can be attributed to the prevailing bearish sentiment in the cryptocurrency market. The general outlook remains bearish, leading to significant price swings for cryptocurrencies like XRP.
These fluctuations often result in the closure of open positions, fueling FOMO among altcoin traders. This could potentially explain the sharp decrease in XRP’s OI.
Considering the current market sentiment and XRP’s OI, it appears that traders are moving away from altcoin investments.
Contrasting On-Chain Metrics
Interestingly, these developments unfolded amid a series of significant events in the market. Notable occurrences include the swearing-in of crypto-friendly U.S. President Donald Trump and the submission of multiple XRP Exchange-Traded Fund (ETF) proposals by asset managers.
Despite these positive occurrences, short-term sentiment lingers on the bearish side, impacting day traders who continue to align with the downward trajectory.
Conversely, long-term holders, investors, and institutions are leveraging the ongoing decline to accumulate significant positions, as per Coinglass data.
Spot Inflows/Outflows data indicate a substantial $187 million outflow of XRP tokens from exchanges in the past week.
This outflow hints at potential accumulation, which could drive buying pressure and propel upward momentum in the future.
Analyzing XRP’s Price Trends and Future Targets
XRP is currently hovering around $2.23, registering a slight 0.85% price dip in the last 24 hours.
However, trading volume has plummeted by 35% during the same period, indicating reduced engagement from traders and investors compared to the previous day.
According to a price analysis by CryptoCrypto, XRP’s recent descent below the critical $2.25 support level suggests a bearish outlook. Breaching this level may trigger a 13.5% decline, with the asset potentially testing the next support zone at $1.90 and the 200-day Exponential Moving Average (EMA).