XRP Price Prediction: Bulls Defend $2.8 as Open Interest Plunges from $3.5B Peak

XRP (Ripple) has entered a fascinating phase where derivatives activity is telling the story of the next potential price move. After touching $3.00 and seeing massive speculative interest, the digital asset is now consolidating around $2.8 while traders reassess their positions. This cooling-off period could be setting the stage for the next significant price movement.

XRP (Ripple) Price Consolidates After Massive Derivatives Spike

XRP is currently trading in a tight range around $2.8 following an explosive run that saw open interest across major exchanges blast past $3.5 billion when the price hit $3.00. Famous trader pointed out that this cooling in open interest isn't necessarily bearish – it often signals that traders are repositioning before the next big move.

The pullback from peak open interest levels shows that some of the frothy speculation has been wrung out of the market. However, XRP's ability to hold above $2.8 demonstrates underlying strength despite the derivative reset.

Derivative Activity Drives XRP Volatility

XRP's recent price action has been largely dictated by what's happening in the futures and options markets. The massive spike in open interest was the primary catalyst for both the rally toward $3.00 and the subsequent pullback.

While open interest has cooled from its peak, trading volumes in XRP derivatives remain elevated. This suggests traders are still actively positioning, creating an environment where price moves can be amplified in both directions. A break above $3.00 could trigger fresh buying that pushes XRP toward $3.5, while a failure to hold $2.8 might see a quick test of the $2.5 support level.

What's Next for XRP Price?

The critical question now is whether XRP can maintain its current levels and build enough momentum for another leg higher. Derivatives flows remain the key indicator to watch, as they've been the clearest predictor of XRP's volatility patterns.

A sustained move back above $3.00 would likely attract fresh speculative interest and could target the $3.5 area. However, traders should remain cautious – the combination of cooling open interest and broader market uncertainties means XRP's next move could happen quickly and dramatically in either direction.