XRP big dump 30% on open contracts! $2.50 may become a key buying point.

The open interest (OI) of Ripple (XRP) futures has fallen by 30% in the past month, decreasing from $11 billion to $7.7 billion, with the price also retreating from a high of $3.66. Although this trend indicates a cooling of margin trading enthusiasm, historical experience shows that a decline in OI is often accompanied by new build a position opportunities, especially when the price approaches below $2.50, which may present an ideal layout timing.

The fall in OI reflects a cooling in leverage, echoing historical trends

(Source: Coinglass)

The recent decline in XRP’s OI, although not as severe as the 65% crash in the first quarter (when it fell from $8.5 billion to $3 billion, and the spot price was halved), still reflects that traders are taking profits or temporarily waiting on the sidelines.

This kind of deleveraging usually means that market sentiment returns to rationality, laying the foundation for subsequent rebounds. Similar to the first quarter, when the open interest stabilizes, prices often rebound.

Technical analysis indicates that $2.33–$2.65 is a potential demand zone

(Source: Trading View)

From the daily chart, XRP has formed a Fair Value Gap (FVG) between $2.33 and $2.65, and this area is expected to become a support zone for bulls to re-enter.

The liquidation data also shows that there has not been a panic sell-off in the market: only $22 million in long positions were liquidated on Monday, while the liquidation amount during the 6% drop on August 14 was $56 million, far lower than the scale during past overheated markets. This means that the selling pressure is manageable, providing conditions for price stabilization.

Whale fund inflow turns into short-term selling pressure

(Source: CryptoQuant)

CryptoQuant data shows that when XRP reached a high of $3.66, whale addresses holding between 100,000 to 1,000,000 coins experienced a significant inflow of funds into exchanges. Historically, this phenomenon has often occurred before price peaks, such as $3 in 2018, $1.90 in 2021, and $0.90 in 2023.

Currently, XRP is consolidating below $3. If whales continue to reduce their positions, the price may test the support level of $2.6; on the contrary, if it holds above $3, it will confirm bullish dominance and pave the way for a new breakout.

Conclusion

Although the fall of the XRP open contracts reminds investors to remain cautious, it also releases potential buy signals. If the price retraces to the range of 2.33–2.65 USD and finds support, it will provide an ideal entry point for the next round of rebound. Short-term volatility is inevitable, but the long-term structure remains intact, and the goal of challenging 5 USD in 2025 is still achievable. For more real-time market data and in-depth analysis, please follow the official Gate platform.