XRP Derivatives Positions Plummet 15.3% as Price Holds Steady

XRP's price has managed to hold steady despite a significant drop in derivatives positions on Binance. The XRP open interest on Binance fell 15.3% from its recent six-month high of $616.1 million to $521.5 million on September 29. This decline in derivatives positions is a positive sign, as it suggests that investors are reducing their leverage and risk exposure.

The data from CryptoQuant Quicktake shows that the estimated leverage ratio fell to 0.197 from 0.230 at the peak, and the funding rate eased to about 0.005 from about 0.010. However, the leverage ratio is still above the six-month average of 0.169, indicating that investors are still taking on significant risk.

On the other hand, spot data suggests that XRP holders are increasing their holdings on Binance. The exchange's XRP holdings were estimated at about 2.68 billion XRP on a seven-day average, which is 2.4% above the 90-day baseline of about 2.62 billion XRP.

While this increase in holdings could be a sign of preparations to sell, it's also possible that it's simply a result of more XRP being concentrated on Binance. The data doesn't provide a clear indication of whether the next move will be higher or lower.