XRP Loses Early 2026 Gains as Derivatives Open Interest Falls Below $500M

Beincrypto reported that XRP erased early 2026 gains and was trading near $1.88 amid broader crypto market weakness, with derivatives open interest collapsing below the $500 million mark.

The outlet noted XRP began 2026 up more than 27% in the first five days of January before momentum faded; over the past 24 hours the token posted a modest 0.078% loss and was trading around $1.88 at the time of writing. Analyst Darkfost highlighted a pronounced decline in open interest after a July 17 peak of $1.76 billion on Binance, saying the drop coincided with a sharp correction that cut XRP from $3.55 to roughly $1.83.

Darkfost argued the open-interest contraction reflects deep deleveraging that can flush excess leverage and reset market structure, and historically such cleanup phases have often been followed by bullish recoveries once investor interest returns. The analysis also points to on-chain and technical signs that could support a rebound: a falling Liveliness metric suggesting accumulation by long-term holders, an RSI recovery from oversold levels below 30, and a descending wedge pattern.

Headwinds remain—data show XRP reserves on Binance and Upbit rose in January to nearly 10% of circulating supply, which can indicate selling pressure. The coming weeks will determine whether deleveraging cleared enough excess to sustain a recovery or if further declines are likely.

Key Topics

Crypto, Xrp, Binance, Open Interest, Darkfost, Rsi