XRP News Today: Macro Shocks Send XRP Open Interest Into 40% Freefall

The XRP market experienced a dramatic collapse in open interest, shedding 40% of its leverage following a volatile price drop in late October 2025. The token's price fell from $2.77 to $1.64 over a 24-hour period, marking one of the largest intraday declines in XRP's 2025 trading history. This sharp correction was driven by macroeconomic shocks, including the announcement of 100% tariffs by Trump, which triggered cross-asset risk aversion and forced unwinds across derivatives markets. Over $150 million in XRP futures were liquidated during the session, with long positions outpacing shorts in a 15:1 ratio, according to CoinDesk Data XRP Rebounds Sharply After 41% Flash Crash Reclaims USD2.47 Support^[1].

The selloff led to a 6.3% overnight decline in open interest, a metric that measures the total value of outstanding leveraged positions. By October 11, XRP rebounded to $2.47 as institutional buyers absorbed panic-driven sell-offs, but the damage to leverage was evident. Open interest remained 48% higher than one month prior, indicating lingering speculative activity, though the market remained vulnerable to further liquidations XRP Open Interest Drops By $2.4B After Recent Selloff^[3]. Technical analysis highlighted $2.47–$2.48 as a short-term support zone, with key resistance at $3.05 critical for a sustained recovery XRP Rebounds Sharply After 41% Flash Crash Reclaims USD2.47 Support^[1].

The broader derivatives market also reflected reduced leverage. On Binance, the world's largest cryptocurrency exchange by volume, XRP open interest dropped 37% from its July peak of $1.76 billion to $1.1 billion by September 2025. This decline signaled a cooling of speculative fervor, with traders reassessing risk exposure after a period of heightened volatility. Analysts noted that while leveraged positions persisted, the reduction in open interest suggested a stabilization phase, potentially mitigating the risk of sudden price swings .

Price action underscored the market's fragility. The $1.64 intraday low was briefly absorbed as a capitulation level, but institutional accumulation between $2.34–$2.45 indicated efforts to rebuild exposure. Volume surged to 817 million, nearly tripling recent averages, as volatility spiked to 41%. However, the final hour of trading saw consolidation within a $0.03 range, signaling caution among participants XRP Rebounds Sharply After 41% Flash Crash Reclaims USD2.47 Support^[1].

Looking ahead, the path to recovery hinges on overcoming the $3.05 resistance level. Analysts at Analytics Insight noted that a breakout could trigger a rally toward $3.65–$4.00, contingent on sustained institutional inflows and regulatory clarity. The recent resolution of Ripple's legal battle with the SEC, which ended with the regulator withdrawing its appeal, has bolstered confidence, but macroeconomic risks-such as U.S. monetary policy and global economic conditions-remain critical factors Can XRP Reach $10 Margin by October 2025? - Analytics Insight^[2].

Despite the bearish near-term outlook, some experts highlighted potential catalysts for a rebound. The approval of a spot XRP ETF in the U.S., expected by late October 2025, could drive institutional adoption and liquidity. Additionally, Ripple's On-Demand Liquidity (ODL) service continues to expand, offering real-world utility that differentiates XRP from speculative assets. However, on-chain metrics, such as low decentralized finance (DeFi) activity and tokenized asset adoption, remain underdeveloped compared to competitors like Avalanche XRP Open Interest Drops By $2.4B After Recent Selloff^[3].

The market's mixed signals underscored the delicate balance between bearish and bullish scenarios. A breakdown below $2.70 could extend losses toward $2.50, while a rebound above $3.20 might trigger a short squeeze. Traders closely monitored whale activity, with large holders reportedly accumulating 60 million XRP during the dip, suggesting confidence in the $3.10 support zone XRP Futures Cooloff: Binance OI Declines 37% From Peak^[4].

In summary, XRP's open interest collapse reflects a market grappling with leverage risks and macroeconomic uncertainties. While the 40% drop in open interest indicates a partial deleveraging, the token's future trajectory will depend on regulatory developments, institutional demand, and the ability to maintain key technical levels.