Bankers, Bets, and Demons: XRP’s Spectral Reset

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In the backroom of the market, where the clock ticks with the sigh of a demon and the old ledgers squeal like tired teeth, Ripple’s XRP has wandered down a 26% path over the past month, amid the crypto carnival’s twilight. A fresh almost-3% tumble on Wednesday revived the whisper that last weekend’s liquidation fever may not have exhausted its appetite for coins and nerves.

Yet a new set of figures murmurs of a market reset after the carnage-an opportunity for spot demand to guide the price by its own stubborn footfalls, without puppeteering from over-leveraged marionettes.

Market Reset Underway

XRP’s open interest on Binance has fallen sharply to $406 million, the lowest since November 2024. The market, like a veteran clerk who has seen every trick, is less programmable when leverage is trimmed; long liquidations and position-closers have performed their quiet dance, CryptoQuant notes in its latest recital.

When OI is at these nadirs, the market becomes less vulnerable to volatility from long or short squeezes, as much of the speculative leverage has been cleared. CryptoQuant calls this a “reset” that often clears the stage for a more stable trend to amble onto it.

With forced liquidation pressure reduced, future price movements are less likely to be exaggerated by over-leveraged phantoms. If spot demand awakens, aided by high on-chain activity, XRP’s price could recover in a more natural fashion. The analysis paints this “clean slate” as fertile ground for a meaningful trend reversal, and the derivatives market now seems ready to respond with the calm of a Moscow autorickshaw following a quiet road.

Full Reset Phase

Similar omens emerge from the arithmetic of momentum. Crypto analyst Egrag Crypto says XRP’s macro relative strength index (RSI) has plunged into the 45-50 zone faster than he expected-a region historically preluding sharp price rebounds.

The analyst notes that while downside momentum appears aggressive, the selling pressure does not look retail-driven but rather the distribution by large holders during liquidity sweeps. Egrag Crypto stresses that this RSI behavior is not bearish, calling it a “full reset phase” following a prior RSI peak near 80.

He adds that the 45-50 range has acted as macro support in every XRP cycle and has never been broken. According to him, this compression typically flushes out weaker hands, resets momentum, and is followed by expansion. The framework would turn bearish only if RSI falls below roughly 43.

In terms of institutional appetite, US-listed spot XRP ETFs attracted $19.46 million in inflows on February 3, according to SoSoValue. XRPZ Franklin XRP ETF topped the chart with $12.13 million, followed by Bitwise’s fund with $4.8 million and Grayscale XRP Trust ETF with $2.51 million. By comparison, Bitcoin ETFs recorded $272 million in net outflows, while Ethereum ETFs attracted about $14 million, leaving XRP funds as relatively jaunty stand-ins in a theater full of mischief.

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2026-02-04 19:00