XRP Price Tumbles as Leveraged Traders Unwind Positions

XRP's price has been declining after reaching a high of $1.70 last week, falling to around $1.41 as leveraged traders begin to unwind their positions.

The token had experienced a sharp spike in trading volume and futures open interest, with approximately $3.45 billion in open interest and 24-hour futures volume reaching around $6.4 billion, more than five times the roughly $1.2 billion recorded in spot trading.

CryptoQuant data showed XRP's estimated leverage ratio on Binance climbed to roughly 0.21 this week, its highest level since January, as traders increased leveraged exposure during the token's rally from around $1 in mid-August.

Buyers struggled to sustain the price above $1.50-$1.55 following the peak, and XRP subsequently fell below $1.45 before briefly approaching $1.37 on Aug. 27 and recovering towards $1.41.