{"id":32560,"date":"2026-09-17T21:26:38","date_gmt":"2026-09-17T20:26:38","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/09\/17\/xrp-price-leverage-reset-open-interest\/"},"modified":"2026-09-17T21:26:47","modified_gmt":"2026-09-17T20:26:47","slug":"xrp-price-leverage-reset-open-interest","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/xrp-price-leverage-reset-open-interest\/","title":{"rendered":"XRP Holds Above $1.29: Leverage Reset or Bearish Signal?"},"content":{"rendered":"\n

Open interest<\/strong> on XRP<\/strong> derivatives has shed more than $250 million<\/strong> in under a month. Yet the Ripple<\/strong> token’s price is holding firm above $1.29<\/strong>. That divergence deserves a closer look.<\/p>\n\n\n\n

Behind this gap between a resilient spot market<\/strong> and a contracting futures market<\/strong>, two scenarios are competing: a quiet erosion of bullish sentiment, or a straightforward leverage flush ahead of the next directional move.<\/p>\n\n\n\n

On-chain data<\/strong> and ETF flows<\/strong> offer concrete clues \u2014 and they don’t all point in the same direction.<\/p>\n\n\n\n

A Massive Open Interest Contraction, But No Capitulation<\/h2>\n\n\n\n

Total open interest<\/strong> on XRP<\/strong> has fallen from $1.128 billion<\/strong> in August to $871.22 million<\/strong> today, according to aggregated data from major platforms. Binance<\/strong> recorded the steepest decline in absolute terms, dropping from $558M to $423M, while Bybit<\/strong> pulled back from $379M to $291M. This contraction is broad and uniform \u2014 not an isolated anomaly on a single exchange.<\/p>\n\n\n\n

A drop in open interest<\/strong> typically means traders are closing futures positions, getting liquidated, or reducing exposure ahead of a repositioning. That is not automatically bearish. In this specific case, several indicators point toward a leverage reset rather than a flight of buyers<\/strong>. The OI-weighted funding rate<\/strong> on Binance<\/strong> remains positive, signaling that long positions<\/strong> still dominate among contracts that remain open.<\/p>\n\n\n\n

The overall 24-hour long\/short ratio<\/strong> sits at 0.9904<\/strong> \u2014 seemingly near-balanced. But that figure masks a sharper reality: on Binance<\/strong> and OKX<\/strong>, large-account holders are leaning long at a ratio of 2.5 to 3 against 1. Total liquidations<\/strong> over 24 hours amount to $9.67M, split almost symmetrically between $4.87M in longs and $4.80M in shorts. It is hard to read a clear directional purge into those numbers.<\/p>\n\n\n\n

\"XRP<\/figure>\n\n\n\n

XRP ETFs Keep Attracting Capital \u2014 A Strong Signal<\/h2>\n\n\n\n

While the derivatives market deleverages, spot demand is sending a different message. Franklin Templeton’s XRPZ fund<\/strong> recorded $3.5 million in net inflows<\/strong> on September 16, extending a ten-day consecutive inflow streak \u2014 despite a slight price correction on that same day. This decoupling between price and flows is a signal of institutional conviction that is difficult to ignore.<\/p>\n\n\n\n

The sector-wide comparison reinforces that picture. Over the same period, Bitcoin ETFs<\/strong> suffered $295 million in net outflows<\/strong>, and Ethereum ETFs<\/strong> lost $224 million. XRP<\/strong><\/a> is therefore among the rare crypto ETF<\/strong> categories maintaining a net buying dynamic, which sets its demand profile apart from the two largest assets in the market.<\/p>\n\n\n\n

In early September, CryptoQuant<\/strong> contributor Amr Taha<\/strong> flagged an unusual structure<\/strong>: a rise in open interest<\/strong> coinciding with a persistently negative perpetual CVD<\/strong> (Cumulative Volume Delta) \u2014 a divergence signal between position accumulation and actual selling pressure on the order book. Binance’s<\/strong> funding rate<\/strong> briefly turned negative following heavy liquidations in early September before flipping positive again. These oscillations illustrate the volatility of short-term sentiment without undermining the underlying structure.<\/p>\n\n\n\n

What to Watch to Confirm or Invalidate the Bullish Case<\/h2>\n\n\n\n

The constructive scenario rests on one central assumption: the market is flushing excess leverage without spot buyers stepping away. For that scenario to play out, the key metric to monitor is the open interest recovery<\/strong> \u2014 a gradual rebound accompanied by a stable positive funding rate<\/strong> would indicate that fresh capital is entering with conviction, rather than old positions mechanically rebuilding.<\/p>\n\n\n\n

The 12-hour window leading into the current rebound showed $500.96K in long liquidations<\/strong> versus just $148.49K in shorts \u2014 an imbalance that coincided with the price weakness phase. This type of micro-flush can precede a bullish move if spot demand absorbs the pressure. Holding above $1.29<\/strong> as immediate support<\/a> remains the first test to clear.<\/p>\n\n\n\n

ETF flows<\/strong> represent the second key indicator. If inflows into XRPZ<\/strong> continue beyond ten consecutive days, that would reinforce the thesis of structural institutional demand \u2014 a factor that the derivatives market, inherently more speculative in nature, does not always capture in real time.<\/p>\n\n\n\n

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