XRP experienced a significant pullback after a continuous rise. According to data from the blockchain and derivatives platform CryptoQuant, Binance recorded the strongest selling pressure on derivatives since 2026, with a net active selling volume of approximately 96 million US dollars. During the price decline, leveraged long positions were liquidated en masse, further amplifying short-term volatility.
XRP In the past two weeks, it has risen by nearly 70%, reaching around $1.70 at one point, setting a high since January of this year. As prices soared, the futures market also heated up, with the number of open contracts increasing by over 34%, from approximately $3.45 billion to $3.66 billion. CryptoQuant Analysts Darkfost also mentioned that Binance's leverage ratio has risen to 0.21, which is the highest level in nearly seven months.
After the leverage increased, selling pressure was released in a concentrated manner.
During the period of rising prices, more traders increased their leveraged positions. As XRP began to decline, the fragility of the derivatives market was quickly exposed. Data shows that Binance's net active trading volume dropped to approximately negative 96 million US dollars, which usually indicates a significant increase in active selling pressure.
After selling pressure expanded, large-leverage long positions were forced to close out, further exacerbating the downward pressure and leading to a squeeze on long holders. When XRP fell back to around $1.43, approximately $20 million in positions were liquidated. Darkfost believes that XRP is currently facing the strongest derivative selling pressure since 2026.
US spot ETF maintains net inflow
Despite the pressure on the derivatives market, funds in the spot market have not weakened significantly. As of August 26, US spot XRP ETF has recorded net inflows for 9 consecutive trading days, with the latest trading day seeing an additional inflow of 28.14 million US dollars.
From the cumulative data, the total net inflow of the relevant ETF has approached 1.62 billion US dollars. Among this, the XRP ETF of Bitwise had a single-day inflow of 13.12 million US dollars. The continuous inflow indicates that some funds are still being allocated through compliant products XRP, rather than being completely withdrawn.
$1.40 level becomes a short-term focus
The current market focus has shifted to the $1.40 level. If buying orders can continue to absorb selling pressure, some short positions may be forced to close, and the price could find new support. On the contrary, if this level is lost, the chain reaction of forced liquidations caused by high leverage earlier on may continue to unfold.
Overall, XRP is currently in a phase where 'strong spot funding inflows' coexist with 'accelerated deleveraging of derivatives'. ETF provides support, but the liquidation of high-leverage positions remains the main source of price volatility.
