XRP Liquidation Pressure Eases as Spot Demand Remains Key

XRP's liquidation pressure on Binance has eased after months of sharp spikes, according to an analysis by Cryptoquant. This easing suggests less strain from leveraged trading, but sustained gains would still depend on spot buying, trading volume, and supportive price trends.

The analysis found that XRP long liquidations on Binance exceeded short liquidations, indicating that long positions have been more heavily affected by recent downward price movements. The network value-to-transactions ratio fell 69.28% to 36.97, a measure that compares market capitalization with onchain transaction volume expressed in dollars.

The analyst noted that the reduction in forced selling could be a positive sign for XRP, but emphasized that spot buying and trading volume would need to support any sustained advance. In fact, U.S. spot XRP exchange-traded funds (ETFs) recorded $3.28 million in net outflows on October 2.

The Binance derivatives positions contracted by about 32% between August 22 and September 17, from roughly $323 million to $219 million. This reduction in leverage could also contribute to the easing of liquidation pressure.