- XRP futures open interest on Binance has fallen to its lowest level since 2024.
- Price stability near $1.80 despite deleveraging suggests healthier market structure.
- Reduced leverage plus potential regulatory tailwinds like the Clarity Act could set up a more sustainable next move for XRP.
XRP derivatives activity on Binance has declined sharply, with open interest falling to approximately $453 million, marking its lowest level since 2024. The drop reflects a significant reduction in leveraged positioning, according to analyst ChartNerd, who highlighted the development as both a warning sign and a potential opportunity.
Open interest measures the total value of outstanding futures contracts. A decline typically signals traders closing positions, reduced speculative appetite, or a broader reset in market participation.
Chart Shows Major Deleveraging Across 2025
An accompanying chart from CryptoQuant shows XRP open interest peaking above $1.6–$1.7 billion during multiple periods in 2025, coinciding with sharp price swings toward the $3 region. Each of those peaks was followed by steep drawdowns in both price and leverage.
Most notably, the most recent decline shows open interest collapsing from well above $1 billion to the current $453 million level, while XRP’s price has stabilized near $1.80.
This divergence suggests that a large portion of speculative leverage has already been flushed out of the market. Historically, such resets have often preceded periods of more stable price action, as forced liquidations and overcrowded trades are removed.
Also Read: Analyst: XRP Symbolic “589” Target Is Heading to the Highest Level, Here’s Why
$XRP‘s Open Interest on Binance has dropped to $453 million – Its lowest level since 2024. However, this setup gives #XRP a noticeable edge. The Clarity Act is shaping up to be a key tailwind, and looking back at 2025, XRP has held up better than most top caps. pic.twitter.com/H78V7M6RQG
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) December 28, 2025
Why the Drop May Actually Favor XRP
Despite the sharp fall in derivatives exposure, ChartNerd argues the setup may give XRP an edge going forward. With leverage significantly reduced, downside volatility driven by cascading liquidations becomes less likely.
Lower open interest can also indicate that the market is transitioning from speculation-driven moves toward spot-led activity. In this environment, price movements are more likely to reflect genuine demand rather than short-term positioning.
ChartNerd also pointed out that XRP has held up better than many other large-cap cryptocurrencies throughout 2025. While several top assets experienced deeper drawdowns from their highs, XRP has managed to retain a higher percentage of its gains, even as derivatives exposure unwound.
This relative strength, combined with reduced leverage, suggests XRP may be better positioned for more sustainable moves compared to assets still weighed down by excessive futures positioning.
Clarity Act Seen as a Key Tailwind
Beyond market structure, ChartNerd highlighted the Clarity Act as a potential catalyst. The proposed legislation is expected to bring clearer regulatory definitions for digital assets, particularly around commodity versus security classification.
For XRP, clearer legal treatment could unlock renewed institutional participation and improve confidence across both spot and derivatives markets. With leverage already washed out, any renewed demand tied to regulatory clarity could have a more pronounced impact on price.
Market Reset May Be Setting the Stage
While a $453 million open interest reading underscores caution and reduced risk appetite, analysts note that such conditions often emerge near inflection points rather than market tops. With speculative excess largely cleared, XRP now trades in an environment shaped by lower leverage, improving regulatory outlook, and relative resilience compared to other major tokens.
As ChartNerd suggests, the catch is that what looks like weakness on the surface may actually be laying the groundwork for a stronger, more stable next move.
Also Read: 2026 Could Be XRP’s Best Year Yet, Here’s Why
