What to know:
- XRP open interest surged following a $2.9 million long liquidation, lifting prices through leveraged futures activity rather than spot demand.
- According to Xaif Crypto, Binance spot volume remains weak, raising concerns about sustained buying support for the current rally.
- Rising open interest alone does not confirm stronger demand, making spot participation a critical indicator for XRP’s recovery moving forward.
Crypto analyst Xaif Crypto has flagged a renewed surge in XRP open interest, warning that the latest price rally may not be as strong as it appears. According to the analyst, leverage has returned aggressively, but weak Binance spot volume suggests real buying demand remains limited.
XRP Leverage Rebuilds Following $2.9 Million Liquidation
According to Xaif Crypto, XRP’s open interest has climbed again, only days after a $2.9 million long liquidation flushed leveraged bullish positions from the market. The return of leverage has helped lift XRP to around $1.13 as short sellers faced renewed pressure.
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🚨 $XRP leverage traders are BACK 📈
Days after a $2.9M long flush rekt weak hands, OI is surging again squeezing shorts, pushing price to $1.13.
The catch? Binance spot volume is basically ZERO.
This pump is 100% paper. No real buyers yet. 👀 https://t.co/aP6AtE22hn pic.twitter.com/OvljPmCddL
— Xaif Crypto (@Xaif_Crypto) July 16, 2026
The analyst noted that futures traders have driven much of the latest move. As open interest increased, XRP recovered part of its recent losses while more leveraged positions entered the market. The rise in open interest also suggests that traders are becoming more active after the previous liquidation event.
However, the analyst stressed that rising open interest alone should not be interpreted as confirmation of stronger buying demand. Instead, it reflects the total number of outstanding futures contracts, whether traders are positioned for higher or lower prices.
What Is the Catch Behind XRP’s Rally?
According to Xaif Crypto, the biggest concern is that Binance spot trading volume remains extremely weak even as XRP open interest rises. The analyst argued that the latest advance has been driven largely by leveraged traders instead of direct buying in the spot market. As a result, the rally may lack the support typically associated with sustained price appreciation.
Moreover, leverage-driven moves can unwind quickly if traders begin closing positions or face fresh liquidations. Xaif Crypto noted that open interest only measures outstanding futures contracts and should not be viewed as proof of stronger demand.
Consequently, the analyst said traders should watch for an increase in spot trading volume alongside open interest. A simultaneous rise in both metrics would indicate that genuine buying interest is supporting XRP’s recovery rather than leverage alone.
Conclusion
XRP has returned to around $1.13 as leveraged traders rebuild positions following a recent $2.9 million long liquidation. However, according to Xaif Crypto, weak Binance spot volume remains the key concern, suggesting the latest recovery still lacks meaningful support from direct buyers despite the surge in open interest.
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