Key Points
- XRP As prices rebound, trading volume plummeted by 79%
- More than $40 million in XRP long positions were forcibly closed.
- Futures positions have begun to be rebuilt, but spot buying remains weak.
From October 8th to 10th, the daily trading volume of XRP / USDT on Binance decreased from 252.45 million US dollars to 54.12 million US dollars. During the same period, the closing price of XRP rose by 1.6%, from 1.3805 US dollars to 1.4024 US dollars.
This deviation occurred after a wave of liquidations. That round of liquidations wiped out leveraged long positions worth over 40 million US dollars. What the market is currently focusing on is whether XRP will be able to sustain this rebound without a significant increase in spot market activity.
XRP Trading volume plummeted by 79%, but prices rebounded
On October 8th, the transaction volume reached $252.45 million, then dropped to $120.39 million on October 9th, and further decreased to $54.12 million on October 10th.
During the same period, the closing price of XRP saw an increase, making this decline of approximately 78.6% in trading volume particularly noteworthy. This indicates that XRP's current rebound lacks confirmation of sustained trading volume on Binance.
However, these data only cover one trading pair of a single exchange and do not represent the entire XRP market.
A total of over $40.7 million in long positions on three exchanges were forcibly liquidated XRP.
Before the shrinkage in spot trading volume, the XRP derivatives market had already experienced significant losses.
According to records from XRPL.to, between October 7th and 8th, approximately $40.7 million in long positions of XRP were forcibly liquidated on Binance, Bybit, and OKX, while the amount cleared for short positions was only $1.72 million.
Among them, Binance had the highest amount of forced liquidations in a long position, reaching 24.69 million US dollars; followed by Bybit with 11.65 million US dollars; and OKX with 4.36 million US dollars.
These numbers represent the notional value of the contracts that were forcibly closed out, and they are not equivalent to the actual cash losses incurred by traders. Furthermore, these data reflect information from a sample of monitored exchanges, rather than comprehensive settlement statistics covering the entire market.
The broader sell-off in the crypto market has also put additional pressure on leveraged positions, as traders are reducing their risk exposure.
XRP Futures positions are being rebuilt, but the spot demand remains uncertain.
Despite undergoing liquidation, by October 11, derivatives traders had begun to re-establish their positions again.
Compared to the previous day, the number of open contracts on Binance increased by 1.3% to 297.75 million XRP; Bybit increased by 3.3% to 20.1 million XRP.
However, the open positions of the two exchanges are still below the level of October 8th.
The funding rate has also turned positive again, indicating that traders holding long stock perpetual contract positions are once again paying fees to the shorts. A positive funding rate may be accompanied by an increase in bullish positions, but it does not guarantee that prices will rise further.
Marcus Hale
Marcus Hale is an author in the fields of cryptography and financial markets, covering reports on Bitcoin, Ethereum, digital assets, regulation, ETF, and institutional adoption. His work focuses on influencing market dynamics, investor trends, and the broader forces that shape the crypto economy.
