XRP (XRP) price declined by 16.8% between Feb. 23 and Feb. 26, leading to $79 million in leveraged long futures liquidations. Notably, the correction occurred despite a largely positive regulatory outlook and increasing odds of approval for a spot XRP exchange-traded fund (ETF) in the United States.
At the same time, open interest in XRP futures fell to its lowest level in 2025, indicating that traders have been unwinding leveraged positions. While this shift does not necessarily signal a broader bearish sentiment, it raises concerns about whether XRP’s bullish momentum has weakened.
XRP aggregate futures open interest, XRP. Source: CoinGlass
The aggregate open interest in XRP futures dropped to XRP 1.33 billion, marking an 8% decline from the previous week. In comparison, SOL open interest fell 4% over the same period, while the aggregate futures market for DOGE remained flat.
To determine whether traders are losing interest in XRP, it is essential to analyze the funding rate of perpetual contracts (inverse swaps). This rate, charged by exchanges to balance leverage demand, turns positive when long (buy) positions pay to hold, signaling bullish sentiment. Conversely, a negative rate suggests a bearish outlook.
XRP 8-hour perpetual futures funding rate. Source: CoinGlass
XRP’s 8-hour funding rate has remained near zero since Dec. 9, indicating a balanced leverage demand between bulls and bears. The last brief surge in leverage demand occurred on Dec. 4, 2024, following a 140% rally in XRP’s price over two weeks. Notably, this peak in buying pressure preceded a sharp 22% correction in less than three days.
XRP/USD 12-hour price in December 2024. Source: TradingView / Cointelegraph
On Dec. 3, 2024, the funding rate remained below 0.05% per 8-hour period, equivalent to 0.45% per month. This suggests that leverage buyers had already positioned themselves aggressively before the correction.
Reduced XRP demand shows uncertainty over spot ETF approval and SEC case resolution
Current market conditions differ significantly from those in December 2024. XRP’s last rally took place between Feb. 12 and Feb. 15, when its…
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