XRP Derivatives Market Undergoes Significant Reset

A recent analysis of exchange data shows that open interest in XRP has been declining over the past 90 days. Top exchanges such as Binance and Bybit have experienced significant drops in open interest, translating to billions of dollars in speculative leverage being wiped out.

The charted pattern of repeated deep red dips across multiple exchanges suggests aggressive deleveraging, which often signals forced liquidations or traders closing positions. This synchronized decline is unusual and has been noted by top analyst Xaif Crypto.

Historically, when open interest drops significantly, it can reset the derivatives market, normalizing funding rates and clearing out crowded positioning. This could lead to a more stable market environment, where price movements are less influenced by leveraged traders.