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.