Activity in XRP derivatives on Binance has increased sharply, with open interest rising by 14.8 percent in the past 24 hours. This marks the highest level since early March, when it previously reached around 16 percent.
This surge has come alongside repeated liquidations of long positions and a noticeable shift toward short positioning, creating an uncertain outlook for XRP.
Leverage Builds While Long Traders Take Losses
According to analyst Amr Taha, the jump in open interest shows that traders are returning to the derivatives market and increasing their exposure to XRP. However, the broader data complicates any bullish interpretation.
He pointed to three major long liquidation events that happened within a short period. More than $2.5 million was wiped out on March 18, followed by $2.45 million on March 21 and roughly $2.15 million on March 26. Each wave of liquidations removed heavily leveraged bullish positions just as market exposure was rising, suggesting that trader confidence remains fragile.
Taha explained that while rising open interest usually signals growing speculative activity, repeated long liquidations indicate that bullish traders continue to face pressure during volatile conditions.
The situation becomes more cautious when considering the decline in Binance’s Cumulative Volume Delta, a metric that reflects the balance between buying and selling in futures markets. When open interest increases while this metric falls, it often signals that new short positions are entering the market rather than new buying interest.
At the same time, spot market demand has weakened, showing that retail traders have not stepped in to counterbalance the growing bearish sentiment.
There are still clusters of vulnerable short positions above the current price level. If XRP moves upward, this could trigger a short squeeze. For now, though, market momentum appears to favor sellers.
XRP’s Current Market Position
At the time of writing, XRP is trading around $1.36, reflecting a 2 percent drop over the past day and nearly 7 percent over the past week. The asset remains significantly below its all time high of $3.65 recorded in July 2025 and has declined 42 percent over the past year.
Its recent price movement has been tight, fluctuating between $1.34 and $1.39 over a 24 hour period, which highlights the lack of a clear trend throughout much of March.
Earlier analysis from CasiTrades placed XRP within a broader bearish structure, with a possible drop toward $0.87 unless it can break above and hold $1.65. On the other hand, EGRAG CRYPTO has offered a more optimistic long term outlook, suggesting XRP could reach as high as $27 by August 2027. However, this projection depends on the asset first finding a bottom near the same $0.87 level identified in the bearish scenario.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
