XRP Futures Open Interest Hits 2025 Low — Is Bullish Momentum Fading?

Open interest in XRP futures has dropped to its lowest level in 2025, suggesting that traders are unwinding leveraged positions.

While this does not necessarily indicate a widespread bearish sentiment, it raises concerns over whether XRP’s recent bullish momentum has weakened.

The total open interest in XRP futures declined to $1.33 billion, an 8% drop from the previous week, according to data from CoinGlass.

Funding Rates Signal Cautious Market Sentiment

To assess whether traders are losing interest in XRP, analysts often look at the funding rate of perpetual contracts, which reflects leverage demand.

When funding rates turn positive, it indicates that long positions (buying interest) are dominant, signaling a bullish market sentiment. Conversely, negative funding rates suggest a bearish outlook.

Since December 9, XRP’s eight-hour funding rate has remained near zero, indicating a balance between bullish and bearish leverage demand.

The last time XRP saw a notable surge in leverage demand was on December 4, 2024, following a 140% rally.

That increase in buying pressure was followed by a steep 22% correction within three days, highlighting the volatility surrounding leveraged positions.

XRP since the election is still up 340%, and still up 5% YTD… who's buying?

meanwhile, BTC -9% YTD, ETH -30% YTD, SOL -29% YTD…

shorting XRP vs. buying the dip on everything else in the near future makes a lot of sense, especially with XRP 2x SOL in market cap and 2.8x SOL… pic.twitter.com/NQ1x5ed4lA

— Gold Mansacks (@Gold_Mansack) February 27, 2025

Current market conditions, however, differ significantly from those in late 2024.

The most recent price rally occurred between February 12 and February 15, when XRP surged 17% from $2.41 to $2.83.

Unlike the previous rally, funding rate data suggests no increase in leveraged buying, indicating that traders may have grown more cautious or shifted their focus to other cryptocurrencies.

One factor that continues to impact XRP’s outlook is the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

While the SEC has recently dropped cases against Coinbase, OpenSea, Robinhood, and Uniswap, Ripple remains an exception.

However, a surprise resolution in Ripple’s favor could trigger a sharp rally.

Ripple’s Strategic Push Meets Resistance

Another setback for XRP came from reports that Ripple CEO Brad Garlinghouse unsuccessfully attempted to persuade the U.S. government to establish a Strategic Digital Asset Reserve that would diversify holdings beyond Bitcoin.

Pierre Rochard, vice president of research at Riot Platforms, noted that former President Donald Trump’s administration has signaled it will no longer push for a dedicated crypto council, further diminishing the likelihood of government-backed XRP adoption.

The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren.

It’s Ripple/XRP. They are aggressively lobbying against the SBR by throwing around $millions at politicians, desperately trying to derail it.

They did the same to…

— Pierre Rochard (@BitcoinPierre) January 23, 2025

As of now, XRP is trading at $2.19, down by over 4% over the past day.

The token’s price experienced a sharp decline of 16.8% between February 23 and February 26, resulting in $79 million in liquidations of leveraged long futures.

According to analysts, for XRP to turn bullish, it must break above $2.22 and hold it as support.

If buying pressure increases, we could see a move toward $2.25, where the next major resistance lies.

A breakout above $2.30 would indicate a shift in momentum, potentially setting XRP up for a retest of $2.35-$2.40.