The XRP Open Interest (OI) has climbed over 11% since the beginning of this week to reach $2.65 billion on March 27.
On Sunday, March 22, the OI, the total value of active contracts still held by market participants across all exchanges, of XRP, hovered around $2.38 billion. Over the course of the week, the altcoin’s OI attracted more than $270 million to reach a seven-day peak on Friday, according to crypto market data from CoinGlass.
As of press time, CME Group registered the highest XRP OI at approximately $659.9 million. Binance, the largest cryptocurrency exchange by daily average traded volume, recorded an OI of approximately $457.4 million, while Bybit reported $239.2 million.
What’s the impact of the rising OI of XRP on its price?
The rising OI figure is a direct signal of renewed demand for XRP among derivatives traders. On Thursday, as the altcoin’s OI surged to $2.53 billion, the majority of derivatives traders were positioned bearishly as the funding rate turned negative, contributing to the token’s decline from $1.41 to $1.36 by the end of that session.
However, during the past 24 hours, XRP’s funding rate returned to positive territory, coinciding with the week’s peak OI. This shift signals a potential near-term bottom for the altcoin. Furthermore, the token has revisited its March support level near $1.33, the same level from which XRP staged a rally of over 20% earlier this month.
Overall, XRP’s OI growth this week has unfolded against a backdrop of the altcoin’s price weakness, with the token declining 7.6% to trade at approximately $1.33 at the time of reporting. The week’s trajectory reflects a tug-of-war between bearish derivatives positioning, which peaked on Thursday, and a tentative bullish pivot evident in the funding rate’s return to positive territory on Friday.
