CryptoOnchain2025-10-18

XRP Market Full Reset: $1.9 Billion in Open Interest Evaporates in 12 Days

Data shows that between October 6 and October 18, the market was completely purged of speculative positions. During this 12-day period, the total Open Interest (OI) across all exchanges plummeted by 65.5%, falling from $2.9 billion to $1 billion. This signifies a net outflow of $1.9 billion from the market. Meanwhile, Binance, as the leading market, saw its OI crash from $1.32 billion to $480 million, indicating a massive cleansing on the largest derivatives platform. This vertical drop is a classic characteristic of a Long Squeeze Cascade. An initial price decline triggered forced liquidations of leveraged long positions. This forced selling intensified the selling pressure, leading to further price drops and subsequent waves of liquidations. Future Outlook: This event has effectively “reset” the market, clearing it of excessive leverage. Now, the future path depends on two key factors: Concurrent Growth in Price and Open Interest: This combination is a strong sign of new capital entering and the beginning of a healthy uptrend. Continued Weakness: If the price continues to decline while OI remains low, it would signify a lack of demand and confirm bearish sentiment.