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$XRP derivatives activity has weakened on exchanges, even though $XRP is still trading well above its August lows. Meanwhile, rising liquidity on Binance suggests more market activity.
CryptoQuant author Amr Taha said $XRP’s open interest on Bybit changed sharply from growing in August to falling in September.
$XRP Open Interest Falls on Bybit
On August 18, $XRP open interest on Bybit hadincreasedby about 61 million $XRP over the previous 30 days.
Meanwhile,$XRP’s pricemoved higher. It rose from about $1.00 on August 18 to $1.37 on September 12, a gain of roughly 36%.
This shows a clear difference between $XRP’s price and derivatives activity. While $XRP’s price increased by more than a third, the amount of open derivatives positions fell significantly. A similar trend is also visible on Binance.
Binance Open Interest Falls Further
Taha said Binance’s $XRP open interest fell to about -53 million $XRP on September 15, compared with around -39 million $XRP on July 10. This means open interest was about 14 million $XRP lower than in July.
At the same time, $XRP was trading near $1.42, about 42% higher than its August 18 price. This shows that $XRP’s price has stayed strong even as open positions on major exchanges have fallen.
However, the data does not show whether traders were closing long or short positions. So, the drop in open interest alone does not mean $XRP is bullish or bearish.
$XRP Liquidity on Binance Hits Six-Month High
While $XRP open interest has fallen, liquidity onBinancehas improved sharply. CryptoQuant author Arab Chain said $XRP’s 30-day liquidity turnover on Binance has risen to about $4.6 billion. The liquidity index also reached 0.0675, its highest level in about six months.
Liquidity was weaker in July and August, when turnover fell to around $2 billion–$3 billion. It has since recovered as more $XRP has moved through Binance.
Higher liquidity means traders can buy or sell larger amounts with less impact on $XRP’s price. However, rising liquidity does not necessarily mean $XRP is becoming more bullish. The figure includes both buying and selling activity, as well as deposits and withdrawals.
$XRP Market Shows Mixed Signals
$XRP’s market data is sending mixed signals. On one hand, $XRP is trading much higher than in August, and liquidity on Binance has reached a six-month high. On the other hand, open interest has fallen sharply on both Bybit and Binance.
This means $XRP’s price has risen even as the amount of outstanding derivatives positions has decreased, while spot-market activity has increased.
Overall, stronger liquidity and lower derivatives activity give $XRP a mixed market outlook as traders watch whether its recent gains can continue.
Source: cryptonews.net