XRP’s $2.46B Open Interest flush sets stage for bullish rebound

Key Points

1. XRP's Open Interest (OI) dropped sharply by $2.46 billion, marking its biggest leverage flush since May, yet the price is holding steady between $3.10-$3.20.

2. The recent OI decline coincided with a 13% price drop and a 7.54% decline in XRP/ETH, as capital rotated back into Ethereum (ETH).

3. XRP/ETH has tapped a support zone that previously triggered a 25% bounce, which historically led to an 80% rally in XRP.

4. Despite the OI drop, XRP's price stability in the demand zone and compressed trading range suggest a potential breakout above $3.50 if capital flows return.

5. The OI flush aligns with overheated funding, stretched RSI, and a spike in realized profits, indicating a market reset rather than a rejection.