XRP is feeling the heat as the broader crypto market sheds leveraged positions, but a steady stream of institutional money into spot-based products is providing a counterweight. Open interest has contracted sharply in recent days, a sign that leveraged traders are being shaken out after months of building exposure. Meanwhile, cumulative inflows into spot XRP products have now reached about $1.44 billion, according to data from CoinGlass and TradingView.
Open Interest Shrinks as Leverage Comes Off
The drop in open interest isn't surprising given the broader deleveraging across digital assets. For XRP, the contraction suggests that the rapid build-up in futures and perpetuals over the past quarter is now reversing. When leverage unwinds this quickly, it tends to amplify downward price moves — and XRP has already struggled to hold key levels. The timing isn't great for bulls who were hoping the institutional bid would carry the token higher.
Spot Inflows Hit $1.44 Billion
On the other side of the ledger, spot XRP exchange-traded products continue to attract capital. The $1.44 billion cumulative figure represents sustained demand from allocators who are buying actual XRP rather than synthetic exposure. That matters because spot demand can absorb some of the selling pressure coming from the derivatives side, but it doesn't erase it. ETF inflows don't guarantee price increases — price is still hostage to Bitcoin's direction, macro risk, exchange liquidity, and the very funding markets that are now bleeding.
Chart Shows Struggle Below Moving Averages
The technical picture isn't pretty. XRP has been trading below its key moving averages for weeks, and each attempt to reclaim them has been met with fresh selling. For the token to regain its footing, bulls need stabilization first — not a V-shaped recovery, just a halt to the bleeding. After that, a recovery above the moving averages would be the next milestone, followed by a gradual rebuild in open interest and continued institutional inflows.
What Bulls Need to See Next
None of this is impossible, but the path is narrow. The fact that spot demand is still flowing in gives XRP something most altcoins don't have right now: a real bid from long-term holders. But until the leverage washout runs its course and Bitcoin finds a floor, XRP is likely to remain under pressure. The next few days will show whether the spot bid can absorb the derivatives unwind, or whether the selling accelerates further.
