XRP Traders Ditch Leverage Amidst Price Pressure

Recent data from CryptoQuant suggests that XRP traders have become more cautious in the derivatives market as leverage and Open Interest have dropped to new lows. According to analyst CryptoOnChain, XRP's Open Interest has fallen to between 362 million and 369 million over the past few days, the lowest readings seen in the last six months.

This decline is reflected in the token's price, which remains under pressure at $1.06, a 1.98% drop over the past week. The weekly Relative Strength Index (RSI) stands at 33.2, below the neutral level but still above the oversold mark of 30.

CryptoOnChain notes that the liquidation data during XRP's decline from $1.143 to $1.061 showed a balanced pattern between long and short positions, rather than the one-sided wipeout typical of forced deleveraging events. Funding rates also remained close to neutral throughout this period.

The analyst believes the market is experiencing a 'quiet reset' rather than a major breakdown, as traders gradually reduce their exposure in an orderly way. However, it remains to be seen whether Open Interest will continue to fall along with XRP's price or begin to level off.