Traders put more than $184 million into XRP long contracts on Binance within a few hours as the token dropped below $1.30. The buying produced a local 5% rebound, but analysts warn the leveraged positioning leaves XRP vulnerable to cascading liquidations.
Speculative traders in the derivatives market sent more than $184 million into XRP long contracts on Binance within a few hours, according to CryptoQuant analyst DarkFrost. The inflow came as key support levels broke after tough US macroeconomic data.
Hot inflation data triggers the selloff
Consumer price (CPI) and producer price (PPI) indices came in "hotter" than expected, which triggered a drop in US stock indices. XRP corrected by 22.5% from its September high of $1.65 as selling pressure built across the crypto sector.
Some large players nonetheless viewed XRP's fall below $1.30 as an extreme market asymmetry and opened positions against the bearish trend. The buying allowed XRP to recover and show a local rebound of 5%.
Binance takes almost all of the buying
On-chain data shows the inflow was isolated to one exchange. In the peak hour, Taker Buy Volume on Binance exceeded $73 million, and several later hourly intervals added another $35 million each.
Other major exchanges barely registered the move. Similar buys on Bybit reached only $1 million in the same hour, while OKX saw less than $451,000.
Leveraged bets raise the risk
Despite the rebound, analysts point to high risks. The spike in Taker Buy Volume reflects the opening of leveraged positions rather than long-term interest from spot investors.
The high concentration of margin contracts in a narrow price range makes XRP highly vulnerable to cascading liquidations and guarantees increased volatility in the coming days, according to the source.
Source: U.Today
Trading involves risk.
Risk Disclaimer
