Are XRP traders collectively reducing leverage? Triple downward signals suggest a major volatility is imminent

Question

【Crypto World】Recently, XRP has exhibited an interesting phenomenon—leverage positions, open interest, and price momentum are all declining simultaneously. This rare triple downtrend usually indicates that the market is about to make a move.

Data shows that traders are疯狂平仓. The leverage ratio has plummeted from a high of 0.58 in July to around 0.20, and open interest in futures contracts has also significantly decreased from over $10 billion. Meanwhile, XRP’s price has dropped to $1.9, and the Relative Strength Index (RSI) is approaching 35, clearly showing a bearish pattern.

However, there’s a detail—there’s no sign of extreme despair or capitulation in the market yet, so the situation is a bit delicate. On one hand, risks are being released, but on the other hand, some suspense remains. In this state, XRP is susceptible to further declines or sudden sharp volatility, so the subsequent trend is definitely worth watching closely.

LiquidationHunter · Accepted Answer

The leveraged explosion wave is here, and this round is quite intense. But it feels like it hasn't bottomed out yet; the bears aren't that aggressive...

LuckyBlindCat · Answer

Leverage completely cut, contracts liquidated, RSI at the bottom... Is XRP really about to take off this time?

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No signs of surrender? Then it just has to keep falling, stop bragging

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Cut from 0.58 to 0.20, so ruthless... Those who exit are probably the smart ones

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It's just a subtle move, just accumulating at the bottom, old tricks

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Triple downtrend might actually be an opportunity? I always feel it could go even lower

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Futures have shrunk so much, it seems institutions are also scared

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RSI at 35 and no sign of surrender, how low does it have to go to be considered the bottom?

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Let's wait and see, big volatility could come at any time, can't sleep

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Same analysis again, and it just ends up sideways for a month

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Is $1.9 really the bottom? Feels like it could break further

not_your_keys · Answer

All the leverage has been cleared, but I still feel a bit anxious, like waiting for that final blow to come.

GasFeeCrybaby · Answer

Leverage plummeting, contract shrinking, price diving... This rhythm feels like it's gathering strength, waiting for a sudden surge.

SerumDegen · Answer

ngl this deleveraging cascade screams fake capitulation to me... like everyone's showing their hand way too early, where's the actual pain?