XRP open interest on Binance fell to $369.6 million, dropping to its lowest level since 2024.

On July 30, blockchain media outlet The Crypto Basic reported that trading participation slowed in the XRP derivatives market as position unwinding outpaced new inflows.

The figure is based on data presented by CryptoQuant analyst Arab Chain. Arab Chain said open interest in Binance’s XRP contracts fell to its lowest level since 2024. He said this does not mean Binance’s overall derivatives market is shrinking. Binance is still keeping high trading volume in the broader derivatives market, but interest in XRP contracts alone has weakened, he said.

Market participants also appear to have changed how they manage positions. Arab Chain said the decline in open interest shows traders are closing positions and reducing leverage use. With uncertainty persisting, he said participants are cutting XRP exposure rather than increasing new leveraged trades.

He also mentioned that caution increased further after the U.S. Federal Reserve’s recent monetary policy decision. He said the decision made traders more cautious, leading to moves to reduce leverage exposure tied to XRP.

Arab Chain said a drop in open interest alone cannot be used to conclude whether prices will rise or fall. He said it is closer to an indicator of participation intensity and changes in how much leverage investors are willing to take than a price outlook.

Reduced leverage can also affect market structure. Lower leverage can reduce the risk of forced liquidations and the likelihood of sharp price swings, but it can also be read as a sign of weak demand to maintain or enter new XRP positions under current market conditions.

Price action is still tilted toward weakness. XRP is trading near $1.08, up about 1 percent over the past 24 hours. Despite a short-term rebound, the overall chart structure remains dominated by sellers.

Technically, XRP is trading below the 20-day exponential moving average of $1.0947, the 50-day exponential moving average of $1.1287 and the 200-day exponential moving average of $1.4104. It signals bearish momentum remains dominant on the daily chart. Short-term support was cited between $1.07 and $1.08. The area is where the daily S1 pivot overlaps with the lower Bollinger Band.

If that area breaks, $1.00 is cited as the next key support. If it falls below $1.00, it could open the way for further declines to $0.93 and then to $0.80. If buying interest is to return, it must first reclaim the $1.10 to $1.11 zone. A move above the 50-day exponential moving average at $1.1287 and the upper Bollinger Band at $1.1388 would be needed for the short-term outlook to improve.

The figure shows that leverage demand weakened only in XRP contracts, not across Binance’s overall derivatives market. Whether prices and open interest move together has emerged as a key indicator for gauging shifts in sentiment in the XRP derivatives market.