XRP Price Slumps to $1.42 as Derivatives-Driven Pullback Erases Rally
XRP's price has slipped to $1.42 after a sharp derivatives-driven pullback erased much of its recent rally. The token had surged towards $1.70 over two weeks, attracting heavy leveraged positioning.
However, when sentiment turned, the unwind was swift, with over $20 million in long positions being liquidated and net buyer volume turning negative at -$96 million. Open interest climbed above $3.4 billion, indicating a crowded market.
The recent rally was buoyed by steady institutional appetite for XRP, as evidenced by spot ETF inflows hitting a seven-month high of $28.14 million on August 26. This influx of capital has kept the total fund inflows near $1.62 billion.
With XRP's price trading near $1.43, holding above the support zone of $1.40 is crucial to maintaining the broader uptrend. A break below this level could lead to a deeper correction, given the stretched positioning.