XRP Traders Panic-Sell Leverage as Market Focus Shifts
Something is happening around XRP on Binance, and it's worth paying attention to. The amount of leverage accumulated in recent weeks is rapidly disappearing. According to data from CryptoQuant, open interest on Binance decreased by nearly one-third in just over three weeks, from $323 million on August 22nd to $219 million on September 17th.
The price itself has lost about 11% over this period. However, the real story lies not with the decline but with the speed at which traders are closing their positions. The signal is clear: XRP traders reduce their derivative exposure while aggressive selling remains high on both futures and spot markets, as indicated by a strong negative Spot CVD of -2.1 billion dollars.
This trend is part of a larger phenomenon in the crypto market. While some altcoins like UNI, NEAR, HYPE, and ZEC are gaining value due to their own catalysts, others are struggling. The total market capitalization has gained about 2.2% over twenty-four hours, but this growth comes from a select few assets.
One of these assets is XRP, which is approaching a golden cross, a pattern technical analysts often associate with the establishment of a bullish trend. However, XRP's history with this signal is patchy at best, with only five out of ten previous instances producing significant gains three months later.