XRP futures open interest has surged to 1.66 billion tokens, a 2.56% increase in 24 hours, signaling a significant influx of trader capital and positioning at a critical technical juncture. This rise in open interest, a measure of all active, unsettled futures contracts, indicates renewed engagement and growing momentum in XRP's derivatives market. Analyst Z988 Crypto highlighted this data, noting that the increase during a period of price stabilization typically suggests new positions are being opened rather than old ones being closed.
This derivatives buildup coincides with XRP defending a nine-year macro support level. Some market participants are eyeing a long-term target in the $10 zone, a move that could redefine the asset's market structure if sustained momentum materializes. However, February has been volatile for XRP; the token tumbled to $1.11 during a broader market pullback before rebounding to around $1.37, according to CoinCodex data.
The surge in open interest raises a pivotal question: is this capital positioning for a sustained breakout or bracing for heightened volatility? Historically, such increases during consolidation phases have preceded sharp directional moves. The composition of this positioning—whether it's strategic institutional capital or retail-driven leverage—will be crucial in determining if it fuels a sustainable rally or sets the stage for liquidation-driven swings.
Adding to the complex landscape, the broader crypto market experienced a significant stress test. Over the past 12 hours, total liquidations across exchanges reached $435.64 million, with long positions accounting for $393.43 million of that total, according to CoinGlass. XRP saw $9.02 million in liquidations as leveraged longs were forced out. While this removal of overleveraged positions often leads to a short-term price rebound—as seen in XRP's 1.91% four-hour bounce—it represents a derivatives reset rather than a confirmed trend reversal.
Technically, XRP's price action remains under pressure. On the daily chart, the price is below the Bollinger Band midline and the $1.42-$1.45 zone, which now acts as resistance. The lower Bollinger Band sits near $1.29. The bands are currently expanding, which typically signals active range expansion rather than base formation. A decisive daily close back above the midline would suggest stabilization, while a break and acceptance below $1.29 would indicate the downside move is not yet complete.
