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Open Interest Surges, Squeeze Looms

By: bitcoin ethereum news|2025/05/14 01:30:06
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XRP price shows strong rally potential towards $3, outperforming rivals with recent surge. XRP Open Interest surged over $1B in one week (Glassnode); analyst BorisVest notes OI rise. Bullish XRP technicals (Bollinger Band breakout, rising OBV) suggest short squeeze potential. After months of sideways action and volatility compression, XRP shows strong signs it may be preparing for a massive rally towards the $3 price level. The altcoin is already outperforming its rivals, posting a 3.77% surge in the past 24 hours, a key indicator of why XRP price is going up in May 2025. According to analyst BorisVest on CryptoQuant’s Quicktake, XRP recently saw its Open Interest (OI) plunge from an all-time high of $1.5 billion to $530 million. This dramatic drop flushed out over-leveraged positions. Now, however, a new trend is taking shape for XRP: Open Interest is rising again alongside price. This suggests traders are confidently betting on XRP’s next big move. Glassnode data powerfully confirms this shift. XRP Futures Open Interest has surged by over $1 billion in just one week. It climbed from $2.42 billion to $3.42 billion (a +41.6% jump), while the XRP price moved from $2.14 to $2.48 in the same timeframe. $XRP Futures Open Interest has surged by over $1B in the past week, rising from $2.42B to $3.42B (+41.6%). This sharp increase in leverage coincides with a price rally from $2.14 to $2.48, suggesting elevated speculative activity and growing directional conviction, pic.twitter.com/QbsaOM9oxE — glassnode (@glassnode) May 13, 2025 Funding Rate & Taker Activity: Is an XRP Short Squeeze Brewing? The XRP Funding Rate is currently neutral. This reveals an outwardly indecisive market. However, BorisVest highlights that the Taker Buy/Sell Ratio for XRP is at 0.91, an indicator of strong market selling pressure. Interestingly, rising short positions in XRP are being met with XRP price stability. This pattern suggests sellers are being absorbed by larger buyers. Such action is a potential early sign of silent accumulation by “smart money.” Related: XRP Ready for Major Surge: Can the Triangle Formation Push It to $4.40? This specific type of market setup often comes before a short squeeze. A short squeeze happens when the price climbs sharply, forcing overconfident short sellers to buy back and cover their positions, which adds even more fuel to the rally. The current data points to signs of an impending XRP short squeeze to fuel rally towards $3 resistance. XRP Technical Analysis: Will XRP Push Above $3? The daily chart below shows a tight Bollinger Band squeeze, which typically signals low volatility before an explosive move. XRP has now broken above the midline (20-day SMA) and pierced the upper banda classic bullish breakout pattern. Further, the OBV has been steadily climbing, showing accumulation is underway even as price consolidated. The divergence between price and volume is a strong bullish signal, as it indicates smart money may be entering before retail. Related: What Will Drive XRP Price to $3.29? Accumulation Strong, Say Analysts With bullish catalysts converging, if XRP holds above $2.50, the next major resistance lies around $2.85–$3. Breaking this level could open the door to $3.50 and beyond, especially if Open Interest continues rising. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company. Source: https://coinedition.com/xrps-push-to-3-record-open-interest-squeeze-signs-now-emerge/

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