XRP’s derivatives market is flashing a rare signal as the XRP Open Interest (OI) Z-Score drops to levels last seen before its explosive 2024 rally.
Recent data shows the metric has fallen below zero, indicating that leveraged positions have been significantly reduced across the market.
This type of compression typically signals a “reset,” where speculation is washed out and traders step back from high-risk bets.
Historically, a similar drop occurred in late 2024, just before XRP surged nearly 580% from around $0.50 to $3.40.
Such conditions often create the foundation for a new trend, as lower leverage allows organic demand to drive price movements.
At the same time, declining open interest reflects reduced market overheating and less liquidation risk.
However, analysts caution that this signal alone does not guarantee another rally without strong buying volume.
If spot demand returns and momentum builds, XRP could be positioned for a significant breakout in the coming weeks.