Ripple Rally Driven by Derivatives Activity
XRP has seen a notable rally in recent days, with its price rising 39% since August 18. The token is currently trading at $1.396 on Binance, which marks a significant shift in market structure.
According to on-chain data from Cryptoquant, the rally appears driven by derivatives activity rather than exchange supply movement. Funding rates for XRP averaged 0.006 over the recent stretch, well above the quarterly baseline. The estimated leverage ratio climbed to 0.193, close to the six-month maximum of 0.213.
Long liquidations rose sharply alongside the rally, with a single session on August 22 seeing $25.7 million in long liquidations, the largest of the six-month window. This indicates that derivatives traders are driving the recent repricing rather than spot sellers.