$XRP Traders Reduce Leverage Amid Price Stability

$XRP Binance open interest has seen a significant drop of 15.3% from its six-month high, indicating that traders are reducing leverage on the asset. This reduction in leverage comes as the price of $XRP has held most of its recent gains, with a 5.2% decrease from the corresponding high. The data from CryptoQuant shows that Binance $XRP open interest fell from $616.1 million on September 22 to $521.5 million on September 29.

The long liquidations on Binance averaged $3.72 million per day from September 24-29, which is roughly 2.6 times the six-month daily average of $1.43 million. This suggests that part of $XRP's recent derivatives buildup has been cleared without an equivalent drop in price. The estimated leverage ratio on Binance fell from 0.230 at the September 22 peak to 0.197, while funding declined from around 0.010 to 0.005.

However, the leverage ratio remains above its six-month average of 0.169, indicating that traders are still holding onto some leverage. The Binance $XRP reserve averaged around 2.68 billion $XRP over the latest seven days, approximately 2.4% above its 90-day baseline of roughly 2.62 billion $XRP. This suggests that more $XRP is available on Binance, but it does not necessarily mean that holders are preparing to sell.