New reports reveal that the XRP Open Interest (OI) Z-Score has dropped to extremely low levels, indicating a reduction in speculation and a possible leverage reset. According to analysts, the last time XRP’s OI Z-Score reached this level, it resulted in: explosive 600% growth to up-to-date highs in 2024ending the multi-year decline and consolidation of cryptocurrency.
XRP Open Interest Z-Score drops to almost zero
Xaif Crypto market analyst moved to X to attraction major change in XRP leverage conditions in the futures market. According to the analyst, derivatives activity has weakened sharply as Open Interest returned to a neutral baseline.
While sharing the chart, Xaif Crypto noticed this XRP Open Interest Z-Score has now flattened near zero, signaling that traders’ current positioning is no longer tight or extreme compared to historical levels. The analyst revealed that this suggests a decline speculations have disappeared from the marketwith significantly reduced financial leverage. This change also points to a reset in the XRP market structure, where activity is now more balanced and less driven by crowd positioning or gigantic bets in different directions.
Interestingly, Xaif Crypto compared this move to a historical setup, noting that the last time XRP’s OI Z-Score compressed to similar levels, the market entered a robust expansion phase, triggering a massive price rally. During this period in 2024, the price of XRP rose from $0.50 to $3.40, increasing by over 600% before the momentum faded.
It is worth noting that there has been a acute raise in prices years of decline and consolidation in XRP around USD 0.50. The cryptocurrency spent most of 2024 trading between $0.40 and $0.70 as the US SEC lawsuit dragged on. The lawsuit was filed in December 2020, blocking XRP for almost five years prior final settlement in 2025. As sentiment changed, XRP surged over 400% in November 2024 alone, jumping from $0.50 to over $2.50. It then surpassed $3.40 by January 2025 in July towards $3.6it is just shy of the record high of $3.84.
A decline in OI and leverage signals a potential price raise
In the linked post Xaif Crypto excellent these XRP The number of open positions is constantly decreasing since the previous phase in November 2025. As a result, OI currently remains almost flat on major cryptocurrency exchanges including Binance, ByBit and OKX, suggesting that fewer traders are currently using borrowed money to bet on the direction of XRP prices.
Xaif Crypto as well he noticed that the level of financial leverage is currently at an extremely low level, with Estimated Binance Leverage Ratio drops to about 0.15. This means that investors are currently avoiding making gigantic and risky bets. He noted that the market is currently in a composed phase and most of the aggressive trades have already been removed.
According to the analyst, this type of low activity often occurs before larger market moves. With less leverage in the system, there is less selling pressure, but also less market dynamics. However, this also means that when up-to-date investors return, the price of XRP could rise quickly.
Featured image from Adobe Stock, chart from Tradingview.com
