Ripple’s XRP is getting exposed to billions of trades on leveraged markets, which could have an impact on the OG altcoin’s price. Over the past few days, the appetite for betting on XRP’s price has risen, evidenced by real-time stats on CoinGlass.
XRP’s Derivatives Action Lifts Snoozing Spot Markets
Judging from the analysis of seasoned market participants like Xaif, the building up leverage on Futures & Derivatives markets comes at the expense of the Spot market “going dormant”, almost like on a Summer break. The analyst provides a clear example of this: the Open Interest (OI) breached $500 million on Binance in mid-June.
That time, millions were flushed out before the price of XRP stabilized at $1. Current leverage ratio on Binance is 0.163, the analyst notes. Most of the traders are going long on XRP’s price, judging from the long versus short ratio. Binance’s customers appear to be the most bullish, reaching a 2.92 long versus short account ratio.
XRP Bears Take a $2 Million Hit: Big Move Incoming?
On the other hand, the general sentiment is flipping between slightly bullish to slightly bearish. With XRP’s price now standing at $1.14, this has wiped out some bearish positions as well, as some crypto investors didn’t expect XRP to stabilize at this point. Hence, $1.95 million out of $2.83 million in 24-hour liquidations were shorts.
XRP’s price plays have inked a slight gain of 1-2% in Open Interest (OI) on most major crypto platforms, including Bybit, OKX, KuCoin & MEXC. With the cumulative OI hitting $2.53 billion, renewed speculative interest reflects in the trading volume too. XRP’s 10.67% hike in 24 hours garnered the altcoin $2.34 billion on Derivatives offerings.
Surely, that’s a great sign for XRP’s bulls that have waited nearly two months to have a swing at $1.25, a crucial resistance level for XRP that’s unseen since June’s leverage flush. With huge leverage building up again, it’s natural that bigger price fluctuations come next – further demand & geopolitical action will determine which way it will be.
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