CryptoQuant analysts highlighted a notable change in how XRP is being traded on Binance. At first, it might seem confusing that volatility has hit a three-month high while open interest has dropped by roughly $41 million.
However, these metrics indicate that traders are rapidly adjusting their positions amid broader economic uncertainty, suggesting that XRP is approaching a key turning point.
According to analyst, Binance’s XRP volatility indicator hit approximately 0.53, which is its highest reading in over three months. The spike shows a big jump in trading and uncertainty after a long stretch of quiet price movement.
The data shows volatility stayed low through March, April, and most of May, falling from above 1.1 to below 0.40. In recent weeks, however, the trend reversed sharply, with volatility rebounding as daily price swings increased significantly.
The shift suggests market conditions have become more active after several months of relatively muted price fluctuations.
(adsbygoogle = window.adsbygoogle || []).push({});Analyst's report shows Binance XRP open interest falling from $256 million to $215 million over roughly 48 hours. That represents around $41 million in closed futures positions and nearly a 20% decline in short-term open interest.
The metric tracks how much money is tied up in active futures contracts. As such, a sharp drop means traders are closing positions and cutting risk. The analyst called it one of the biggest short‑term resets in XRP open interest since April.
The drop happened at the time of the latest Fed meeting, where rates stayed the same. Even though the decision was widely expected, traders tend to cut risk ahead of notable economic events because unexpected comments from the Fed can trigger sudden market volatility.
Furthermore, liquidation data showed a sharp increase in buyer-side liquidations, suggesting the market experienced its first significant long-position wipeout since early June.
Interestingly, XRP’s price remained relatively stable around the $1.18 area despite the large reduction in leverage. At press time, per CoinMarketCap data, XRP is trading at roughly $1.12, which is a 3.25% drop in the last 24 hours.
Related: XRP Must Reclaim $1.15 for Meaningful Relief: Analyst
