Open interest for XRP on Coinbase has increased even as XRP’s spot price is flat-to-down, a divergence that often reflects new leveraged positions and potential for higher volatility. Technically XRP remains in a wider declining structure (lower highs, failed mid-range recovery since October) with weak momentum and neutral-to-bearish RSI, so a sustained breakout requires fresh spot demand or directional conviction. Current metrics show more long liquidations than shorts and funding/long–short ratios are not strongly bullish, suggesting this is early positioning that could become a leverage trap unless follow-through appears.

Open interest rising while price is flat/down indicates new leveraged positions (from summary). Technical backdrop described as a wider declining structure with weak momentum and neutral-to-bearish RSI—these facts point to limited bullish conviction. Data showing more long liquidations than short and non-bullish funding/long–short ratios imply the positioning is early and could reverse, justifying a mildly negative sentiment and moderate impact for short-term traders.