XRP Traders Pull Back as Leverage Crashes to Six-Month Lows

XRP has seen its Open Interest and leverage plummet to six-month lows, according to CryptoQuant analyst CryptoOnChain. The token's price has struggled in recent weeks, and derivatives data suggests traders are becoming increasingly cautious.

CryptoOnChain noted that XRP's Open Interest has dropped to between 362 million and 369 million over the past few days, with leverage falling to a range of 0.139 to 0.142. This represents a decline of around 12-18% compared to their 90-day averages.

The analyst pointed out that liquidation data shows a relatively balanced pattern between long and short positions during XRP's recent price drop. Funding rates have also remained within a narrow range, indicating a neutral market.

CryptoOnChain believes the current situation is more of a quiet reset rather than a major breakdown. The analyst noted that similar periods in the past have often been followed by either price stabilization or a continuation of the existing trend.