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XRP Derivatives Undergo Forced Reset as ETFs Keep Tightening Spot Supply

A wave of long liquidations has cut leveraged exposure and left price recovery dependent on renewed spot buying and rising futures demand.

Overview

  • Derivatives traders suffered a sharp purge when long liquidations spiked on Thursday, June 25, removing roughly $3 million of leveraged long positions and pushing XRP to about $1.02.
  • Aggregate futures open interest fell from about $1.18 billion to $1.04 billion, a drop that with deeply negative funding rates shows longs were closed rather than smoothly moved to other traders.
  • Binance accounted for a concentrated share of the forced exits with roughly $4.5 million in long liquidations and its XRP futures open interest falling to near $205 million.
  • Institutional spot ETFs continued buying, with week 26 inflows of about 4.82 million XRP lifting ETF holdings to roughly 938.7 million XRP and steadily reducing the amount available on exchanges.
  • Technical buy signals on daily charts and Ripple’s RLUSD rollout in Japan are potential upside catalysts, but a lasting rally needs fresh spot demand and a rebound in futures open interest.