XRP’s $1 Test: $2.78 Billion in Open Interest Raises Risk of Long Liquidations

As XRP struggles to hold the $1 threshold, its $2.78 billion in futures open interest and heavy long bias are increasing liquidation risks in the event of a potential decline.

While the XRP price remains around $1 in Asian trading, a significant portion of investors are positioning themselves in anticipation of a recovery; however, the sharp deterioration in social media sentiment is increasing market fragility.

According to CoinGlass data, XRP futures open interest has increased by 2% to $2.78 billion over the past 24 hours. During the same period, futures trading volume reached approximately $1.17 billion, a 55% increase. Open interest represents the total capital tied up in outstanding derivative contracts that have not yet been closed.

XRP Long Positions Concentrated at Critical Levels

Binance data shows that there are more than three long positions for every short position. Among major traders on the exchange, this ratio was measured at approximately 3.6:1, with the same ratio recorded on OKX. A long position expresses the expectation that the price will rise, while a short position expresses the expectation of a decline.

In contrast, when all platforms are evaluated together, the long-short ratio stands at approximately 0.93. This picture reveals that while the general market is nearly balanced, long positions are significantly concentrated on Binance, OKX, and among large accounts.

Santiment reported that social media commentary regarding XRP has dropped to its most negative level in three months this week. The token’s drop from peaks seen above $3 last year to approximately $1 is pitting investor recovery expectations against negative sentiment.

Approximately 2.77 billion XRP is held in futures positions. Should XRP fall below $1, leveraged long positions with insufficient collateral could be automatically closed by exchanges. If this scenario occurs, forced liquidations could increase downward pressure on XRP, making $1 the key level for investors to watch.