Overview
- Derivatives traders were hit by a large purge of leveraged long positions that sent long liquidations up roughly 830% and reduced open interest by about 11%, leaving futures markets materially lighter.
- Funding rates swung to deeply negative extremes, a mechanical setup that can trigger a short squeeze but does not guarantee one without new buying pressure.
- Spot-side behavior differed from the futures sell-off as exchange reserves barely moved, with Binance XRP holdings down about 0.35%, which shows spot holders did not rush to sell.
- Institutional spot ETFs continued to remove supply, adding roughly 4.82 million XRP in the latest week and lifting total ETF holdings toward 939 million XRP, while Ripple-reported tokenized real-world assets on the ledger jumped from about $5 million to $118 million.
- What to watch next are whether the $1.06 on-chain support holds, whether open interest rebuilds alongside rising price to confirm returning leveraged demand, and whether growing network volume flows into XRP rather than Ripple’s RLUSD stablecoin.