Recent derivatives data indicate a clear shift in XRP market positioning, with bullish traders bearing the brunt of liquidations over the past 24 hours. Although overall liquidation volumes have declined alongside reduced volatility, the distribution of closed positions shows a strong imbalance.
Data from Coinglass reveals that long positions now account for nearly 85% of total XRP liquidations, reflecting a pullback in confidence as the recent price recovery loses strength.
In absolute terms, approximately $7.76 million worth of XRP futures positions were liquidated during the last 24-hour period. This figure is significantly lower than the liquidation levels observed a week earlier, when daily totals approached $22 million.
Despite the size reduction, the composition of these liquidations points to mounting pressure on traders who are positioned for continued upside.
Breakdown of Liquidation Data
Of the $7.76 million liquidated, roughly $6.57 million came from long positions. Short positions accounted for about $1.19 million, indicating that bearish traders were comparatively less affected by the latest price movement.
This imbalance suggests that the market’s recent downturn primarily caught optimistic traders off guard, particularly those who entered positions expecting the rebound to extend further.
The concentration of long liquidations aligns with XRP’s inability to maintain recent highs. After reaching levels above $2.20 earlier in the week, the asset reversed course, leading to a decline of roughly 5% from its local peak. This retracement triggered forced closures among leveraged long positions, contributing to the skewed liquidation profile.
Price Developments Leading to the Liquidations
XRP entered 2026 following a difficult end to the previous year, during which prices fell sharply in the final quarter. At the start of January, however, the broader cryptocurrency market staged a recovery, lifting XRP from a low near $1.84 to a multi-week high above $2.40 by January 6. This rally encouraged renewed optimism, with many traders anticipating a sustained upward trend.
Momentum faded soon after, as resistance emerged and broader market conditions softened. A renewed rebound attempt began around January 11, but XRP’s response lagged behind other major assets.
A modest price increase midweek prompted a fresh wave of long entries, particularly among traders expecting a continuation of the earlier rally. When the price failed to hold those gains, the resulting pullback led to a cascade of long liquidations.
Notably, a substantial portion of the liquidations occurred within a narrow time window. More than 60% of the long positions closed during the last 24 hours were triggered during the most recent price dip, underscoring how quickly sentiment shifted once the recovery stalled.
Shift in Market Positioning and Sentiment
Following the liquidation event, derivatives metrics suggest that traders have become more cautious. The overall long-to-short ratio across XRP futures markets has dropped below parity, signaling that short positions now slightly outnumber long positions.
This change reflects a reassessment of near-term price direction as traders respond to the failed rebound.
At the exchange level, positioning remains mixed. Data shows that on some platforms, including Binance and OKX, a higher number of individual accounts still hold long positions. However, these longs are often smaller or less leveraged, which may explain why broader market ratios show increased short exposure despite the presence of bullish accounts.
Declining Activity Across Derivatives Markets
In addition to the shift in positioning, overall trading activity has slowed. XRP futures trading volume declined by more than 11% over the past day, while open interest fell by nearly 4%.
Options markets also saw a notable contraction, with trading volume dropping by over 20%. These declines suggest that many participants are stepping back to reassess market conditions rather than actively deploying new capital.
The current liquidation pattern highlights a market in transition. While reduced volatility and lower liquidation totals may point to stabilization, the dominance of long liquidations underscores lingering uncertainty around XRP’s short-term direction.
Until price action establishes a clearer trend, derivatives data suggest that traders are likely to remain cautious, with positioning continuing to adjust in response to broader market signals.