XRP Open Interest Nears $5B, Signaling Potential Breakout Amid Bullish Pressure

XRP is drawing fresh attention from traders as open interest in its derivatives market surged to nearly $5 billion over the weekend, signaling growing speculative activity and the potential for a significant price move. As of Tuesday morning, XRP trades around $2.20, maintaining a tight consolidation range often viewed by technical analysts as a precursor to breakouts.

According to Bitget’s chief market analyst Ryan Lee, the sharp rise in open interest suggests that traders are positioning for a decisive move. “This spike indicates strong potential momentum,” Lee told CoinDesk. “Market participants appear to be bracing for a breakout.”

The sustained spot buying pressure adds to the bullish sentiment, with many recalling similar historical setups in XRP that led to rapid price rallies and short squeezes. However, analysts caution that the elevated open interest could also increase price volatility in the absence of a clear market catalyst.

Lee warned that without a fundamental trigger, such as positive developments in the XRP Ledger (XRPL) ecosystem or fresh ETF-related momentum from institutions, traders may face heightened risks. “A bullish breakout could trigger short liquidations, but a shift in sentiment—driven by macro risks or profit-taking—could lead to sharp downside moves,” he noted.

XRP’s current trading behavior is being closely watched, especially as open interest continues to climb. Investors are eyeing both technical signals and fundamental updates that could ignite the next leg in XRP’s price trajectory. While the direction of the move remains uncertain, the market’s anticipation is palpable, with open interest levels not seen since major past rallies.

With XRP poised at a key technical juncture, the coming days could determine whether this surge in speculative activity translates into a sustained breakout or heightened volatility.