Ripple (XRP) Open Interest Dips Below $5B as JP Morgan Partners 3 US Banks Against Ripple’s RLUSD Stablecoin

Ripple (XRP) price plunged 5.2% in the past 24 hours to trade at $2.31 on Saturday, underperforming top five rivals. Derivatives data shows short-term traders rapidly closing out positions, even as Bitcoin (BTC) hit a new all-time high of $111,807. What’s next for XRP price?

Ripple (XRP) Reverses to $2.31 Despite Bullish Bitcoin Outlook

Ripple (XRP) fell behind the broader crypto rally on Friday, weighed down by macro turbulence and fresh sector-specific risks.

While Donald Trump’s 50% tariff threats on the EU triggered fresh institutional demand for Bitcoin on Friday, XRP failed to catch the rally.

According to CoinGecko data, XRP declined 5.1% from Friday’s $2.44 to open trading at $2.31 on Saturday.

In contrast, Bitcoin surged to a record high of $111,807, fuelled by $934 million in daily ETF inflows—the second highest daily total since inception.

With 5.2% losses XRP emerged as the worst-performing top-five asset by market cap. Notably, BTC, Ethereum, Solana, and BNB all outperformed XRP, each posting daily timeframe losses capped under 5% at the time of publication.

Why is XRP Price Down Today?

XRP price underperformance on Friday reflects growing concerns among investors about Ripple’s ability to compete in the global stablecoin market, especially after JPMorgan’s leads a group of four legacy banks, floating the idea of a new Wall Street-native digital dollar project.

On Friday, Wall Street Journal reported that the largest U.S. banks, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring the launch of a joint USD-backed stablecoin.

The plan, still in the conceptual stage, involves utilizing blockchain infrastructure providers like Early Warning Services and The Clearing House to improve payment speed, reduce cross-border friction.

This could see Wall Street Big wigs encroach market share from existing stablecoins launched by crypto-native firms including Ripple’s RLUSD, Circle’s USDC, and Tether (USDT).

Ripple launched RLUSD in March 2025 as a regulated U.S. dollar stablecoin on both the XRP Ledger and Ethereum.

Backed 1:1 by U.S. dollar reserves and short-term treasuries, RLUSD serve as the payment and liquidity backbone for RippleNet and its On-Demand Liquidity (ODL) product suite for insititiuonal players.

At the time of publication on May 24, Ripple’s native Stablecoin now commands a circulating capital of $310 million, per Coingecko’s latest RLUSD data.

However, the emergence of a “Wall Street stablecoin” backed by the top four U.S. banks threatens to diminish RLUSD’s rising market dominance particularly among institutional players.

What’s Next for XRP Price Action as Open Interest Dips below $5B ? 

Further emphasising the bearish outlook open interest in XRP futures markets fell 1.47% to $4.89 billion, signalling that traders are actively de-leveraging from the Ripple-backed coin.

Coinglass’ Derivatives trading snapshot below shows how XRP Open Interest (OI), –the total value of active derivative contracts, has declined 1.5%, shedding over $50 million in the last 24 hours.

Meanwhile, trading volume surged by 51.84% to $6.97 billion, suggesting that the price drop was driven by high-intensity sell pressure in the past day.

More so, XRP Options Open Interest rose by 47.99% to $1.69 million, while options volume doubled to $16,570. This indicates rising hedging activity, as traders brace for volatility following the Wall Street stablecoin news and Trump’s new tarrif on the EU due to come into effect on June 1, 2025.

24-hour Liquidations data confirms bear momentum with $14.88 million XRP Longs wiped out, and $1.02 million Shorts liquidated from the $15.89 million total positions closed.

The 12-hour window alone saw $5.02 million in long positions liquidated. This suggests that a majority of the recent sell pressure came from long-traders getting caught off guard by the JPMorgan news.

If XRP’s open interest continues to decline toward $4.5 billion, spot price action could test key support levels at $2.20 and $2.10.

Will XRP Recover?

On the upside, Bitcoin’s current consolidation above $108,000 provides a favorable macro backdrop. XRP price stabilizes above $2.30 over the weekend, Bitcoin’s steady consolidation above $108,000 could offer a technical buffer for XRP bulls in the near term.

Technically, a recovery toward $2.45 remains possible if XRP holds the $2.20 support and derivatives Open interest reclaims the $5 billion level.

XRP Price Forecast Today: Bears Eyes $2.08 Reversal After Breaching Key Moving Averages

Ripple (XRP) traded at $2.3066 at press time, down 5% from Friday, but the technical outlook leans cautiously bearish as XRP has slipped below both the 9-day and 21-day moving averages ($2.3697 and $2.3556, respectively).

This signal emphasises rising downside risks. The failure to hold above these key trend lines suggests weakening short-term momentum, especially as the price is now closing beneath the short-term MAs for the first time since early May.

The Relative Strength Index (RSI) sits at 48.46, below its neutral 50 line and diverging from its moving average (currently 56.86), implying bearish momentum is gradually building.

This further signals that sellers may continue to assert pressure unless bulls reclaim control above $2.37. The $2.08 level could emerge as the next critical support if the current weakness persists.

While Bitcoin price forecast today remains largely positive, the broader sentiment across altcoin markets lacks bullish conviction. This contributes to XRP’s indecisiveness, with weak follow-through above $2.40 undermining prior breakout attempts.

A decisive daily close above $2.37 would be required to flip the short-term outlook bullish again and challenge $2.60 highs. Conversely, Ripple price may drift lower toward the $2.08–$2.10 region if bearish sentiment remains dominant over the weekend.

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Coingape Staff

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