XRP Derivatives Positioning Cools Sharply on Binance

XRP derivatives positioning has cooled significantly on Binance after last week's rally. The asset's open interest fell by 15.3% from its six-month high of $616.1 million to $521.5 million on September 29.

This sharp decline in open interest contrasts with the relatively minor decrease in XRP's spot price, which has given back only 5.2% since its corresponding high. This suggests that derivatives positioning may be resetting faster than the underlying asset's price.

The estimated leverage ratio for Binance XRP also fell from 0.230 to 0.197, while funding eased from around 0.010 to 0.005. However, leverage remains above its six-month average of 0.169, indicating that traders are still holding significant positions.

The increased reserve on Binance, averaging 2.68 billion XRP over the latest seven days, is approximately 2.4% above its 90-day baseline. This suggests that more XRP is available on the exchange, but it does not necessarily imply that holders are preparing to sell.