XRP rally boosts derivatives activity as $2.2 million shorts face liquidation risk

XRP derivatives activity expanded during a broader rally, with Binance open interest rising 28% to roughly $461.3 million, the highest level in about two months, while a Deribit trader bought 2 million XRP options in a $2.32 million long straddle at the $1.16 strike. The trader paid roughly $62,000 in premium for calls and puts expiring August 28, signaling a wager on a significant move in either direction after XRP surged nearly 15% to $1.34 before settling around $1.26. XRP later rallied 22%, placing about $2.2 million in short positions at risk near $1.38 and potentially creating forced buying as traders close bearish bets. Analysts identified $1.40-$1.50 as the next key breakout range, while 49 million dormant XRP could add selling pressure if transferred to an exchange. Perpetual cumulative volume delta fell to approximately -$463 million, indicating that new positions were building while net perpetual flows remained tilted toward selling. Across Bitcoin, Ethereum and XRP, combined spot and perpetual volume reached $46.6 billion on August 19, including $42.7 billion in perpetual volume, or 91.7% of the total. Separately, Evernorth reported that 23.5% of weekday XRP Ledger activity occurred during the 1 p.m. to 4 p.m. Coordinated Universal Time London-New York overlap in July 2026, compared with 14.3% in July 2025, although public ledger data cannot identify participants.

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