XRP Open Interest Hits 1-Month Peak of $2.73B as Price Retests $1.5 Resistance

The $XRP Open Interest has recently surged to $2.73 billion, marking a 1-month peak amid a retest of a pivotal resistance level.

$XRP has joined the broader market recovery effort, with a 6.64% increase this month putting it on track to record its first monthly gain in six months. Amid the rebound, the price recently retested the crucial $1.5 resistance area, with $XRP Open Interest soaring to a new 1-month high.

Key Points

• $XRP has recovered 11% from its $1.32 low this month, now retesting the pivotal resistance area around $1.5 amid a broader market rebound.
• With this upward push, the $XRP Open Interest has soared to $2.73 billion, representing a 7% rise in the past 24 hours and marking a new 1-month peak.
• The recent spike in $XRP’s price and Open Interest has led to increased short liquidations, with short positions accounting for 95% of total liquidations over the last 12 hours.
• This current condition points to a possible squeeze-driven bounce, as the ongoing short squeeze continues to fuel $XRP’s rally.
• If the squeeze continues and spot demand rises, $XRP could rise higher, but if OI rises too sharply, the market could face an over-leveraged condition.

$XRP Retests $1.5 Resistance Amid Rebound

The latest $XRP rebound effort began in late February after the market recovered from the immediate impact of the Israel-Iran conflict. $XRP rose from an initial low of $1.27 on Feb. 28 to a high of $1.47 by March 4 before pulling back to $1.32. While this pullback dampened investor confidence, it led to a higher low than the Feb. 28 figure.

From here, $XRP embarked on the recovery effort that has now allowed it to establish dominance over the $1.4 level. Specifically, $XRP closed above $1.4 on March 14 for the first time in a week, before soaring 3% on Sunday. It recently leveraged this momentum to retest $1.5 early Monday morning, hitting a high of $1.49 before pulling back slightly to $1.47 at press time.

$XRP Open Interest Hits 1-Month Peak

Amid the ongoing upward push, the $XRP Open Interest has now recovered tremendously, soaring 7% over the past 24 hours to a peak of $2.73 billion. The last time $XRP’s OI saw this high was in early February. Moreover, futures trading volume has also spiked 120% in 24 hours to $4.13 billion despite a 19% drop in options volume within the same period.

$XRP Open Interest Coinglass

Meanwhile, the price increase has punished short positions, as liquidations have mostly impacted investors betting on a price decline. Specifically, over the last 12 hours, the market has witnessed $5.46 million in total liquidations, with short positions making up $5.21 million or 95%. With the 24-hour figure standing at $5.82 million, data shows most liquidations occurred in the last 12 hours.

$XRP Liquidations Data

What Does This Mean for Price?

Notably, a spike in open interest typically means that more traders are opening new positions in the derivatives market, increasing the amount of leverage tied to $XRP. This suggests that market participants are becoming more active again as the $XRP price attempts to rebound.

At the same time, the increase in short liquidations shows that some traders who had bet on further downside are now being forced to close their positions as $XRP’s price moves upward.

When short positions face liquidations, exchanges automatically buy back the asset to close those trades, adding additional buying pressure. This process can accelerate a price rebound, as each wave of liquidations pushes the price higher and triggers more forced closures.

In the longer term, the next price direction will depend on how the derivatives market moves from here. If the $XRP price recovery continues and spot demand strengthens, the liquidations could help support a broader rally.

However, a rapid buildup of leverage, indicated with a sharp rise in Open Interest, will also increase the risk of volatility. If too many traders begin opening highly leveraged long positions, the market could later face a similar wave of liquidations on the downside if the price stalls or reverses.