XRP Derivatives Selling Pressure Hits 2026 High as Traders Face Long Squeeze

CryptoQuant analyst Darkfost warns that XRP is facing its strongest derivatives selling pressure of 2026. This comes after XRP surged nearly 70% in two weeks, climbing to a January high of around $1.70.

The rapid increase has led to heavy derivatives betting on the asset's continued rise. Open interest jumped more than 34%, reaching around $3.45 billion to $3.66 billion, with Binance's leverage ratio climbing to 0.21, its highest level in seven months.

However, this increased leverage has now become a problem for XRP, as traders with large leveraged long positions are being forced to close their trades. This added more selling pressure and triggered a long squeeze, with around $20 million in positions liquidated as XRP moved back toward $1.43.

Darkfost notes that XRP is now facing its 'strongest derivatives selling pressure of 2026.'