XRP Open Interest Climbs As Traders Build Fresh Bearish Positions

Data shows the XRP Open Interest rose alongside Funding Rates turning red, a sign that traders opened new short positions related to the coin.

As the chart shared by Maartunn shows, the XRP Open Interest climbed to $943 million during the weekend.

From the chart, it’s visible that the Funding Rate remained negative during the Open Interest surge, suggesting short investors were paying a premium to the long ones. In other words, the new positions that appeared leaned in the bearish direction.

Currently, the XRP Open Interest is sitting at $952 million, higher than it was on Sunday. Thus, it would appear that a further influx of speculative activity has occurred in the market. “Open Interest didn’t fully reset, and price is now tapping resistance,” noted Maartunn. “Not the kind of structure I want to overstay.”

XRP isn’t alone in finding a rebound in the past day; the rest of the cryptocurrency sector has also surged. Bitcoin, for example, has gone up by more than 4% over the last 24 hours.

Like with XRP, the rally has been accompanied by a spike in the Open Interest, a potential sign that leverage is driving the market right now. “These rallies are usually fragile. Around 75% tend to return to their origin,” explained the analyst.

At the time of writing, XRP is floating around $1.35, unchanged from one week ago.