Saad Ullah
⬤ XRP took a sharp hit during the session as derivatives positioning ramped up across major exchanges. The price slid from the upper $1.80 range down toward $1.81, with aggressive selling following a brief bounce attempt. Meanwhile, open interest kept climbing, showing that traders were opening new leveraged positions rather than closing them out.
⬤ The data tells an interesting story: funding rates went deeper into negative territory while futures traded below spot prices. "When combined with negative funding and premium, such conditions suggest a market leaning heavily in one direction," making the price more vulnerable to sudden swings. That negative premium typically shows up when bearish sentiment dominates the short term.
⬤ XRP's price movement matched these derivatives signals pretty closely. After the quick drop, there was a modest bounce that couldn't reclaim the earlier highs—suggesting buyers weren't really stepping up. Spot volume jumped during the decline, confirming strong participation as the price fell. Even as XRP tried to recover, it stalled and rolled over again with open interest staying elevated.
⬤ This setup matters because rising open interest during falling prices usually cranks up volatility risk. With XRP showing expanding leverage alongside weakening price action, the near-term market is likely to stay reactive to shifts in sentiment, liquidity, and how traders position themselves in derivatives markets.
Saad Ullah
