XRP price rose above $1.41 on May 4, as derivatives activity increased across major exchanges. According to Amr Taha, open interest delta turned sharply positive during the breakout.
The largest increase occurred on Bybit, where XRP open interest rose by approximately $23.9 million. Meanwhile, Binance recorded a smaller increase of about $2.7 million during the same session.
These numbers show that ByBit had significantly more leveraged position increases than Binance. Increased XRP open interest denotes an increase in the number of people participating in derivatives markets for the token.
A significant upturn in open interest, along with price movement, indicates an increase in the total amount of bullish exposure among traders. As the XRP price continues to rise, a shrinking exchange reserve has been observed.
Exchange Reserves Fall as XRP Price Strengthens
According to Amr Taha, exchange reserve data shows a downward trend for the amount of XRP held since mid-March. On Binance, reserves went from 2.80 billion to just under 2.76 billion. That is a loss of almost 50 million XRP.
On ByBit, reserves went down from approximately 117 million to around 98 million. That is a much larger decline of nearly 19%.
Although both exchanges experienced losses in their XRP reserves, they were less severe at Binance, which lost approximately 1.8% versus ByBit’s 16.2%. Declining reserves usually mean there is decreased selling pressure because assets are being removed from exchanges and into wallets.
This results in an improvement in the price of XRP due to decreased supply available for sale. XRP derivatives activity is also showing an increase in market participation.
Also Read | XRP Faces Mixed Technical Signals as MACD Weakens and Momentum Slows
XRP Derivatives Data Shows Rising Market Participation
CoinGlass shows that XRP futures traded volumes surged over 86% in one day. Additionally, open interest also rose by close to 1.43% and hit a high of nearly $2.53 billion across the exchanges tracked.
Furthermore, long/short ratios indicate that traders have taken a very strong bullish stance on major exchanges. Binance exhibited long/short ratios of greater than 2.27, demonstrating extreme dominance in long positioning.
While top trader positioning is taking on a bullish bias, ratios exceed 1.60 across most of the platforms being tracked. This shows that institutional traders are also adding to their directional exposure to XRP.
Another way to view the current market structure is through the XRP funding rate data. The XRP funding rate is still running positive at approximately 0.000023% across all exchanges.
An increasing funding rate for XRP shows that bulls are continuing to support their positions and are maintaining their exposures.
Market Structure Signals XRP Price Continuation
The combination of rising open interest and falling reserves presents a very interesting market structure signal. Rising XRP open interest indicates increased confidence from traders using derivatives products.
The combination of these two dynamics tends to lead to even bigger directional price moves in the cryptocurrency markets. But excessive use of leverage can also create liquidation risk if there’s a rapid reversal in price.
Traders should continue to watch the XRP funding rate and XRP open interest for signs of changes in sentiment. Currently, XRP price action reflects a balance between continued upward momentum and growing leverage exposure.
This setup introduces potential risks if leveraged positions unwind suddenly. If the XRP price stays above important levels, then moving towards higher resistance areas remains possible.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | Bitcoin ETFs Surge as ETH, SOL, XRP Funds Bleed: Stark 2026 Institutional Divide Revealed
