XRP open interest drops $60 million as RSI plunges

RSI’s sharp decline stands out

EGRAG CRYPTO argues that even though XRP’s momentum has clearly weakened, the broader market structure remains intact. Historically, when XRP experienced significant RSI corrections, investors faced exhaustion and pessimism, yet such periods often preceded robust rallies. This time, however, the momentum loss is considered even deeper compared to prior cycles.

Quick glossary: RSI is a technical indicator that measures the speed and strength of price movements. Values above 70 typically signal overbought conditions, while numbers below 30 suggest oversold levels; however, this tool alone is not considered sufficient for trading decisions.

While the RSI is widely used to gauge the strength of price action, what stands out this time is the resilience in XRP’s price structure. According to the analyst, unlike in previous severe drawdowns, XRP continues to hold onto major long-term support levels. This distinction, he notes, separates the current pullback from typical market weakness.

In EGRAG CRYPTO’s view, the ongoing RSI collapse could represent the second phase of the recurring 1 2 3 structure observed in earlier XRP cycles; while this phase brings a difficult retest, it may ultimately pave the way for renewed momentum.

Historic cycle model back in focus

At the heart of the analysis is a recurring 1 2 3 cycle pattern said to have played out in previous XRP market phases. In this model, a breakout in the first stage is followed by a deep correction that flushes out weak hands, culminating in a stronger, more expansive rally in the last stage.

Currently, the key threshold is the RSI 44 level, marked as the “green line” by the analyst. Reclaiming this level decisively could generate a clearer signal that upward momentum is starting to rebuild.

$60 million drop in open interest

The derivatives market for XRP also saw a notable pullback. According to CryptoQuant data, about $60 million in open positions was wiped out from the XRP market within just a few days. This is one of the largest leverage flushes since April. CryptoQuant is known as a platform that tracks blockchain and exchange data for market analysis.

Most of this decline reportedly happened on Bybit. The rapid liquidation of highly leveraged long positions led to a sharp contraction in total open interest. Yet, XRP prices holding steady near $1.16—according to CoinCodex—was interpreted by some market watchers as a sign of healthier market reset.

Despite the steep fall in speculative trading, data revealed that XRP’s price remained relatively resilient; a number of analysts see this not as deep-seated weakness but as evidence of the market finding new equilibrium.

From a structural perspective, such leverage flushes are closely watched because they help curb excessive speculation, balance funding conditions, and reduce the risk of cascading liquidations. After weak participants exit, periods often follow where stronger investors re-enter the market at controlled risk levels.

Although overall market sentiment still appears weak and momentum indicators remain under pressure, EGRAG CRYPTO maintains that the bigger picture has not changed. If the historical cycle model plays out as before, the combination of a record-deep RSI reset and a major open interest wipeout could prepare the ground for XRP’s next significant upward phase.