XRP Derivatives Collapse Deepens as Open Interest Crashes 71%: Glassnode

XRP market weakness continues as open interest contracts and investors book heavy losses.

Investors are becoming increasingly cautious due to the ongoing geopolitical turmoil. The XRP market is also seeing significant weakness as traders appear to be pulling back from the crypto asset.

In fact, new data suggests that XRP’s derivatives market has taken a major hit.

Weak Speculative Demand

Glassnode reported that after the early October 2025 deleveraging event, XRP perpetual open interest dropped sharply from 7 billion to 2 billion tokens, a 71% decline.

The analytics firm observed that positioning has continued to shrink, and open interest fell another 25% to 1.5 billion XRP. Such a pattern potentially means that speculative activity remains low across derivatives markets.

In a separate update last week, Glassnode observed that more than half of XRP’s supply remains underwater. Investors who accumulated above $2 over the past 12 months have been realizing losses at a pace of $20 million to $110 million per day since November 2025, as selling pressure continues.

Amid this backdrop of weakening participation and losses, XRP is seeing widespread pessimism. Santiment reported that fear, uncertainty, and doubt surrounding XRP have climbed to their third-highest level in the past two years. The change comes after more than 60% price decline over the last nine months, which has driven many retail participants out of the market.

Historically, such spikes in bearish sentiment have coincided with a higher likelihood of relief rallies, as prices often move against prevailing expectations. As such, the current market structure could present an entry point.

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Target Points

Analyst Ali Martinez flagged that XRP continues to trade within a large ascending triangle that has been forming on the monthly chart for nearly nine years. According to his analysis, the asset has repeatedly faced rejection at a major resistance level of $3.30 before retracing to a rising support trendline.

Following the latest rejection in August 2025, he expects XRP to retest the $0.75 to $0.80 range. Martinez also described this zone as a key accumulation area, while noting that a breakout from such a long consolidation could lead to a significant move.