XRP Futures OI Drops $1 Billion in 48 Hours, Raising Concerns About Sustainability of Recovery

XRP’s futures open interest dropped by $1 billion in 48 hours, falling from $2.9 billion. This sharp decline followed a failed breakout rally that briefly fueled optimism.

As traders withdrew capital, the drop in OI revealed rising bearish sentiment. The failure to breach key resistance levels has increased skepticism about XRP’s near-term prospects and market activity.

XRP: Critical investor uncertainty?

The XRP Price DAA Divergence highlighted a critical mismatch between price performance and network activity.

As XRP’s price surged in late November, DAA divergence turned sharply negative, signaling that network engagement failed to scale alongside the rally.

This divergence suggests the price movement was driven more by speculative trading rather than organic network growth or utility adoption.

In the aftermath of the rally, DAA divergence remained in negative territory, reflecting persistent skepticism among on-chain participants.

Without an uptick in active addresses, the price’s ability to sustain momentum may be in jeopardy.

The absence of strong on-chain activity — despite the recent surge — raises concerns about the sustainability of any near-term recovery and could keep XRP locked in a consolidated or downward trend unless network fundamentals improve.

Critical levels to watch

XRP’s price action remains at a pivotal moment, defined by a prolonged consolidation phase beneath the $2.73 resistance level.

Over the past month, the token has shed 20% of its value, yet it has managed to hold firm above the critical $2.00 support.

This level serves as both a psychological and technical anchor, preventing further declines despite the mounting uncertainty in broader market conditions.

Price charts display a neutral RSI reading of 50.98, indicating a lack of clear directional bias among traders. Meanwhile, trading volume remains relatively low, underscoring the absence of significant buying pressure.

Similarly, OBV trends highlight muted capital inflows, raising questions about the token’s ability to sustain upward momentum without renewed interest.

A break above $2.73 could pave the way for a rally toward XRP’s all-time high of $3.31, reigniting investor optimism.

Conversely, a breach of the $2.00 support would likely exacerbate the current stagnation, deepening bearish sentiment.

Until a decisive catalyst emerges, XRP appears locked in a state of cautious equilibrium, with its next move resting on broader market dynamics and the restoration of network confidence.