XRP Long Positions Pile Up as Traders Bet on Rebound

$XRP has slipped alongside the broader crypto market, but that hasn't stopped traders from opening more long positions in hopes of a rebound. The broader market has shed nearly $400 billion this week, and $XRP has fallen with it. Even so, multiple traders are still betting on recovery. CryptoQuant analyst Pelinay noted that investors are piling into long positions on $XRP as prices drop. That growing confidence, ironically, may not be a good short-term sign — a crowded long side can easily turn into a long squeeze if prices keep sliding.

Key Points: $XRP fell with the broader market, which has lost nearly $400 billion this week alone. The price dropped from $1.4 to $1.17 while traders increased long positions, pushing the leverage ratio from 0.13 to 0.18. Low volatility and high leverage raise the chances of a sharp downside move. $XRP later hit a yearly low of $1.04 before recovering slightly to $1.08. With the $1.10–$1.15 support now lost, $XRP needs to hold the critical $1 mark to avoid panic selling.

$XRP Seeing Rising Leverage Despite Price Decline Pelinay pointed out that leverage is rising while price keeps falling — a combination she called a major concern. Specifically, $XRP's price dropped from about $1.40 to $1.17, but the Estimated Leverage Ratio climbed from 0.13 to 0.18 over the same period. Traders are taking on more risk rather than stepping back. Funding rates stayed mostly negative, indicating strong short interest. $XRP has not managed to bounce back in any sustainable way; normally negative funding can support a recovery, but here the lack of movement suggests the market remains weak.

$XRP Charts | CryptoQuant Rising leverage, falling prices, and negative funding can form an unstable cocktail when they show up together. Many traders are expecting a reversal — the market, for now, isn't cooperating