XRP Price Action Stalls While Derivatives Market Flashes Key Bullish Signal

After a brief upward move at the start of the year, the XRP (XRP) price has predominantly remained under pressure, mirroring the broader market-wide downturn. As the crypto market faces ongoing headwinds, a key signal from the derivatives market suggests a potential bullish recovery once investor interest returns. XRP Price Struggles, But Derivatives Setup May Favor Recovery BeInCrypto Markets data showed that XRP started 2026 strongly, climbing more than 27% in the first five days of January. However, the momentum quickly faded, and the altcoin changed course, giving back most of its early gains. Over the past 24 hours, XRP has extended its downtrend, posting a modest 0.078% loss. At the time of writing, it was trading at $1.88. While price action remains subdued, developments in the derivatives market are drawing closer attention. XRP (XRP) Price Performance. Source: BeInCrypto Markets In a recent post, analyst Darkfost pointed to a pronounced decline in XRP’s open interest after it reached a peak of $1.76 billion on Binance on July 17. The analyst added that the downturn coincided with a sharp price correction in XRP. The altcoin slid from $3.55 to around $1.83, wiping out nearly half of its value. “As positions were liquidated or voluntarily closed, open interest on Binance continued to decrease, recently dropping below the $500M threshold. This level had now persisted since the exceptional liquidation event that occurred on October 10,” the post read. XRP Open Interest Decline. Source: Darkfost/CryptoQuant The open interest contraction highlights a significant reduction in liquidity in the derivatives market, especially after the October market crash. The analyst also noted that falling prices mechanically compress open interest figures, intensifying the overall drop. Despite the severity of the pullback, Darkfost emphasized that such deleveraging phases play a critical role. They help flush out excess leverage and reset market structure to healthier levels....