XRP Open Interest hits $3.9B, then drops fast: What happens if $3.2 breaks?

Key Points

1. XRP has been consolidating between $3.00 and $3.20 after facing rejection at $3.50, with derivatives market activity suggesting a potential breakout or correction.

2. Open Interest on Binance’s XRP derivatives hit an all-time high of nearly $3.9 billion before dropping to $3.08 billion, indicating strong speculative interest.

3. CoinGlass data shows a Long/Short Ratio of 0.96, with shorts accounting for 50.77% of XRP Futures, suggesting growing expectations of downside movement.

4. Exchange Netflows for XRP remained positive for two days, indicating potential profit-taking, which could hinder a breakout if demand doesn't offset sell pressure.

5. AMBCrypto’s analysis suggests XRP could either experience a short squeeze if prices rise above $3.2 or drop to $2.90 if bearish pressure persists.