XRP struggled to move above the 1.40 dollar level on Wednesday despite earlier optimism this week about a possible easing of tensions involving Iran. At the same time, derivatives data indicates that speculative trading activity around the asset is beginning to decline.
Open interest in XRP derivatives has dropped significantly across major trading platforms after a period of strong speculation that followed the asset’s rise toward its cycle peak in July 2025.
Market Cooling After Long Liquidations
Recent multi exchange data shows that the total value of active futures contracts has fallen across nearly all major platforms, suggesting that traders are reducing leveraged positions. Open interest measures the number of active futures contracts in the market, and a decrease typically means traders are closing positions or lowering their exposure.
Despite the overall decline, Binance still accounts for the largest share of XRP derivatives activity, with open interest currently around 222 million dollars. Bybit follows with approximately 195 million dollars.
Although these figures remain higher than the lowest levels recorded in 2024, they are well below the peaks seen in mid 2025 when XRP reached its cycle high and speculative trading activity surged.
Research from CryptoQuant found that long liquidations have significantly outnumbered short liquidations across exchanges, both in terms of frequency and total value. This pattern indicates that bullish traders have been more heavily impacted by recent market volatility.
The analysis also noted that large waves of long liquidations often push funding rates lower and can bring them back to neutral levels or even into negative territory. These conditions usually signal weakening bullish sentiment and growing caution among derivatives traders.
Exchange Activity Declines
At the same time, transfers of XRP to and from major cryptocurrency exchanges have dropped to their lowest levels since the metric was first introduced. The data is based on the Multi Exchanges Daily Depositing and Withdrawing Transactions Delta indicator, which tracks deposit and withdrawal activity across 15 major trading platforms.
According to the analysis, this sharp decline in transaction activity followed a price drop of more than 60 percent from the highs recorded last summer. The reduced number of deposits and withdrawals suggests that fewer users are interacting with exchanges, indicating a noticeable slowdown in overall exchange related activity for the cryptocurrency.#crypto #cryptonews https://t.me/coinsignalpublic https://coinsignals.net
