XRP Derivatives Explode 3,948%, Is Liquidity Expanding?

XRP has seen a surge in the derivatives market, with futures volume increasing amid traders' participation. According to CoinGlass data, XRP futures volume rose 3,948% in the last 24 hours on the Bitmex crypto exchange, reaching 3,948.30%.

The price drop across the market early this week was not only accompanied by increased liquidations but also coincided with a move that saw the options markets de-risk aggressively, with open interest falling.

At press time, XRP open interest was recovering, slightly up 2.15% in the last 24 hours. The setup is forming as XRP seeks a breakout past the $2 level, a price zone that has repeatedly shaped holder behavior.

According to Glassnode, the $2 level remains a major psychological zone for XRP holders. This is because, since early 2025, each time XRP has retested $2, investors have seen realized $0.5 billion to $1.2 billion per week in losses. This reflects the significance of this key level.

XRP setup in focus

For now, XRP is seeing fresh demand from short-term buyers and selling pressure from long-term holders seeking to break even, which hints at a major move once one side gives in. The current setup for XRP resembles that of a reset, as futures volume and open interest rise.

XRP rebounded on Jan. 21 after dropping for seven consecutive days; however, it did not reach $2, stopping at $1.98.

A breakout above $2 might begin the next major move for XRP, targeting the $2.41 level again. Support lies at $1.85 and $1.82, from where XRP began to rise at the start of 2026.

In XRP Ledger news, the permissioned domains amendment has reached majority and is set to activate on the mainnet within the next 13 days if 80% support is sustained.