XRP open interest falls 70% from $660M to $203M as traders watch negative funding and a possible double bottom near $1.40.

XRP futures activity has seen a sharp reset after open interest fell from $660 million to $203 million.

The 70% drop came as XRP price also moved lower, showing a broad exit from leveraged trades.

At the same time, funding rates turned deeply negative near $1.40, showing strong short-side demand.

Now, traders are watching whether XRP is breaking lower or forming a possible double bottom.

XRP Futures Market Sees Leverage Reset

XRP open interest recorded a sharp fall as futures positions closed across the market. Open interest measures active futures contracts that remain unsettled. Therefore, a large drop often shows that leverage has been reduced.

The decline from $660 million to $203 million came while XRP price also moved lower. 

When price and open interest fall together, traders often view it as forced exits. This setup can point to liquidations rather than broad spot selling.

XRP just did the one thing that comes before every major rally.

Open interest collapsed 70%, from $660M to $203M. When price and OI fall together, that’s not holders selling. That’s leverage getting liquidated. The weak hands are gone.

And funding went deep negative at the… pic.twitter.com/AxRkljETPJ

— Jungle Inc | Markets & Future Systems (@jungleincxrp) June 23, 2026

The reset has become a key focus for XRP market watchers. It suggests that weaker leveraged positions have been cleared from the market. 

However, price still needs confirmation before a recovery setup becomes clear.

Funding Turns Negative Near Recent Low

Funding rates also turned deeply negative near the recent XRP low around $1.40. 

This means short traders were paying more to keep bearish positions open. As a result, futures positioning became heavily tilted toward lower prices.

Negative funding can draw attention during sharp market drops. However, it does not confirm that a market bottom has already formed. 

Traders still need to watch support, volume, and price reaction closely. Some market analysts compared the current setup with XRP’s April 2025 structure. 

At that time, similar futures conditions came before a strong price recovery. Still, past market behavior does not guarantee the same outcome now.

Read Also:

XRP Short Squeeze Risk Grows as $3.9M Liquidation Leverage Stacks Above $1.15

Traders Watch Slip or Double Bottom

Technical analysts are now focused on whether XRP is forming a double bottom. The token has slipped into a lower zone that analysts were already analysing. 

This area is now important for judging whether buyers can defend support.

A double bottom would need XRP to hold the current region and recover toward resistance. 

Without that response, the market may continue to weaken. Therefore, traders are watching structure instead of relying only on futures data.

#XRP – Slip or Double Bottom?:

Since many in the comment section are attacking almost every OG TA analyst in the #XRPFamily, saying:

▫️“TA is BS.”
▫️“Charts don’t work.”
▫️“This is all nonsense.”

Fine. Today I will give you the chart, and you give me the content. Look at the… pic.twitter.com/afG29FlhK9

— EGRAG CRYPTO (@egragcrypto) June 23, 2026

Open interest has also started rebuilding while XRP price remains mostly stable. This shows that leverage is returning after the earlier reset. 

However, steady price action must continue before stronger recovery calls gain support.