XRP Short Positioning Spikes Amid Price Pullback

XRP's price has been experiencing a pullback in recent days, and on-chain data shows that market positioning has shifted towards the short side.

The rise in open interest alongside the drop in perpetual CVD indicates new short positions entering the market. Traders are adding leverage while selling pressure increases, as more derivatives traders position for another move lower.

Selling activity has weakened massively in the spot market, with estimated XRP spot CVD across centralized exchanges dropping from $235 million to $112 million between Aug. 4 and 7, a decline of over 52%. This shows that buying activity has weakened significantly.