XRP Leverage Resets Amid $14.2M Liquidation Flush

XRP's recent price volatility has led to a significant drop in leverage for both long and short positions, resulting in $14.2 million in liquidations over 48 hours. This sudden flush of leverage from the market could potentially lead to a reset, which might fuel a price recovery for XRP.

The data shows that XRP Open Interest fell by 14% from $558 million to $478 million as of writing, while leverage eased from 0.203 to 0.182. This suggests that traders have stopped aggressively chasing long positions, as evidenced by the Funding Rates slipping to -0.002 after a fourteen-positive-session streak.

Interestingly, Binance reserves remained flat near 2.6176 billion XRP, while deposit addresses plunged 91%. This indicates that leverage has cooled without holders rushing coins towards Binance, which could be a positive sign for the market.