Crypto: 60 million speculative positions on XRP liquidated in a few days

The signals sent by XRP are becoming increasingly difficult to interpret. While its RSI recorded one of the sharpest corrections in recent history, nearly $60 million in open positions disappeared from the derivatives market in a matter of days. A double alert which could have precipitated a further fall in prices. However, Ripple's token displays unexpected resistance. Between technical deterioration and cleansing of speculation, analysts are now wondering about the true scope of this movement.

XRP facing one of its biggest momentum corrections

Analyst EGRAG CRYPTO believes that XRP is currently going through a particularly delicate technical phase. According to him, the relative strength index (RSI) is experiencing one of its most significant corrections observed on the asset in recent years.

He relates this evolution to a recurring cyclical structure which he describes as a model “1-2-3”. In his analysis, he explain that : “The current fall in the RSI could mark the second stage of the recurring cyclical pattern seen in previous XRP cycles. Although this phase is accompanied by a delicate retest for the market, it could, ultimately, favor the return of new upward momentum”. In other words, this fall in the RSI could correspond to an intermediate phase already observed during previous XRP cycles before a resumption of momentum.

According to this reading of the market, several elements deserve particular attention:

• XRP's RSI is going through one of the sharpest corrections in its recent history;
• This phase would correspond to a difficult retest already observed during previous cycles;
• The RSI at 44 is identified as a determining technical threshold;
• A return above this zone could signal a renewed momentum according to the analyst.

The disappearance of 60 million dollars of open interest

Alongside this deterioration in the RSI, data from CryptoQuant reveals a drop of approximately $60 million in open interest on XRP. This rapid contraction in the number of open positions on derivatives markets reflects a significant outflow of speculative capital. A large part of this decrease would have been recorded on the Bybit platform. According to the data, this leverage purge is among the largest observed since April on Ripple's assets.

The element that attracts the attention of observers lies in the relatively limited reaction of the price to this massive disappearance of speculative positions. “Despite the sharp decline in speculative trading, the data reveals that XRP has retained some strength. For several analysts, this situation does not reflect a structural weakness of the market, but rather reflects an ongoing rebalancing phase.. For several analysts, this stability indicates that the market is gradually absorbing the speculative excesses accumulated during previous phases.

This sequence now places XRP in a special situation. Momentum signals remain weakened while the derivatives market has just undergone a significant cleansing of leveraged positions. For observers, the challenge now consists of determining whether this purge simply marks a phase of consolidation or whether it prepares the conditions for a new, more lasting balance. The next developments in the RSI and the behavior of investors on derivative markets could provide decisive indications on the ability of the XRP price to regain a more favorable dynamic.