Ripple’s native token XRP just experienced one of its sharpest derivatives market resets of 2025.
According to new data from CryptoQuant, open interest across all exchanges plunged from nearly $3 billion on October 6 to roughly $1.8 billion within four days, a staggering 40% contraction that reflects mass deleveraging among traders.
The correction was most visible on Binance, which accounted for nearly half of all XRP open interest. The exchange’s futures OI dropped from about $1.3 billion to $825 million, confirming a widespread liquidation event as leveraged traders exited en masse.
This aggressive flush came on the back of a violent price collapse on October 10, when XRP broke below its key $2.75 support zone. The breach unleashed a wave of stop-loss triggers and forced liquidations, driving prices momentarily as low as $1.07 before a recovery to around $2.37 by the daily close.
Analysts note that this “liquidation wick” signals the removal of excessive speculative leverage from the market, often a necessary step before sustainable recovery. Still, the technical structure has been damaged: the former $2.75 support now stands as a strong resistance, and bulls will need to reclaim it before momentum can return.
Despite the short-term hit, derivatives cleansing events like this historically mark the end of overheated phases. Market observers now watch whether institutional inflows and spot accumulation can stabilize prices near the $2.30 zone. A decisive bounce could set the stage for renewed upside into Q4 2025, but for now, the focus remains on whether XRP can rebuild market confidence after one of its most severe leverage purges of the year.
