XRP Futures Increase on Binance Amid Rising Liquidation Events: What Lies Ahead for Ripple?
Open interest in XRP derivatives on Binance has surged, indicating a return to trading, but with caution due to increasing liquidations.
Open interest (OI) in XRP derivatives on Binance surged 14.8% in the last 24 hours, marking its highest level since March 4, when it peaked near 16%.
This increase is accompanied by persistent long liquidations and a shift in order flow toward short positions, presenting a mixed outlook for the Ripple token.
Rising Leverage, Decreasing Longs
Analyst Amr Taha noted that the high open interest indicates traders are returning to the derivatives market to regain positions in XRP. Despite the increase in OI, the accompanying data complicates the bullish sentiment, as Taha identified three significant liquidation events occurring in rapid succession. Over $2.5 million was lost on March 18, $2.45 million on March 21, and around $2.15 million on March 26. Each event eliminated crowded bullish positions at a time when leverage was increasing, suggesting ongoing instability in market conviction.
“Increasing open interest generally indicates more speculative activity,” he explained. “However, repeated long liquidations suggest that bullish positions are still being discouraged amidst volatility.”
The situation is further complicated by the simultaneous rise in open interest and a decrease in Binance’s Cumulative Volume Delta (CVD), which tracks the net direction of futures orders. According to Taha, when OI rises while CVD drops, it typically indicates that fresh short positions are entering the market instead of new long ones. Notably, spot CVD also weakened during this period, suggesting that retail buyers did not step in to mitigate the shift.
Current Market Condition of XRP
At the time of writing, XRP is priced around $1.36, showing a 2% decline over the last day and nearly 7% over the week. Additionally, the token is approximately 63% below its all-time high of $3.65, recorded in July 2025, and down 42% year-on-year.
A previous evaluation by analyst CasiTrades categorized XRP within a broad bearish wave structure, targeting a downside of $0.87 unless the price breaks and maintains above $1.65. On a more optimistic note, EGRAG CRYPTO has made bold forecasts for XRP, speculating it could reach up to $27 by August 2027, although this projection hinges on the asset first bottoming near the estimated $0.87 level identified by CasiTrades.
