The globe’s largest crypto exchange spotted a lob-sided trend on the Derivatives market that has leveraged traders on edge. Around 97% of all recent fresh long XRP position exposure circulated around $1.40. XRP dipped below this level, so most of this multi-billion dollar long liquidity cluster is now heavy in the red.
What XRP Derivatives Players Can Do From Here
Now the choice is whether leveraged XRP bulls would raise their stakes and cover the margins or to activate a stop loss mechanism to reduce the deficit on the balance sheet. The liquidation positions vary from the exact position, but the current trendlines show the next strong support level at $1.29 in case of losing $1.31.
XRP’s price managed to recoup the $1.35 resistance level at the time of publication, and the Derivatives markets now paint a brighter picture than yesterday. XRP’s bulls took in a $11.88 million deficit in over-leveraged position liquidations. On Friday, Coinglass reported $3.33 million in total liquidations as bulls get close to even.
The Open Interest (OI) weighted funding rate is back in green territory, signaling that short-sellers are back to paying for bulls’ crypto positions on the leveraged markets.
XRP’s Downtrend Still Intact, Here’s What Can Flip It
Conversely, the broader picture depicts two crucial levels XRP’s bulls have to conquer to break this week’s downtrend. Traders should monitor the Red-Label Bollinger Band (BOLL) at $1.39 before a breakout towards the SuperTrend price of $1.49, portrayed in green on the 4-hour XRP price charts from TradingView.
XRP was building a fundamental support area between $1.39 to $1.55, printing higher lows on the daily time-frame since August, but the current price of the token is still four cents below that range. $1.49 plays a particularly important role for the bulls, aligning with the SuperTrend price.
If XRP’s rebound gets back into that demand zone, the next resistance level with a potential sell wall lies at around $1.65 – $1.66. If that is cleared smoothly, XRP’s both 4-hour and daily crypto chart setup points to roughly $2 as a plausible near-term target once geopolitics gets priced in.
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