XRP dropped to $1.075 on August 3, and derivatives data now shows something unusual happening beneath the surface. Open Interest has slumped to 362-369 million, the lowest in six months, while use sits at 0.139-0.142, creeping toward its half-year low of 0.133.
Both metrics have fallen 12-18% compared to their 90-day averages. Traders are quietly cutting their bets. Over the past six months, Open Interest ranged between 362 and 519 million, averaging 435 million, so this pullback is real.
The liquidation puzzle
Here's where it gets interesting. When XRP fell from $1.143 to $1.061, liquidations didn't follow the usual script. On July 27, long positions got wiped for $3.24 million while shorts lost $470,000. Two days later, the picture flipped: $640,000 in long liquidations versus $548,000 in shorts. That's balanced, not one-sided. A real deleveraging event crushes one side hard.
Funding rates stayed locked in a narrow band between -0.009 and +0.010 throughout, hovering near neutral even as week-over-week changes spiked over 1,000%. The actual cost of holding positions barely budged.
The pattern suggests caution rather than panic. Traders are reducing exposure gradually, not getting forced out of positions. XRP sits near the lower end of its recent range, but the derivatives market isn't screaming distress yet.
This material is informational only and should not be construed as financial advice or investment guidance.
