XRP (Ripple), Leverage at 6-Month Low... 'Quiet Reset' Begins

▲ XRP

Leverage in the XRP market has fallen to a 6-month low, signaling an unusual 'quiet reset'.

According to the cryptocurrency specialized media The Crypto Basic on August 5 (local time), CryptoOnChain, an analyst at CryptoQuant, stated that XRP open interest recently decreased from between $362 million and $369 million. This is the lowest level in the last 6 months. During the same period, open interest averaged $435 million and increased to a maximum of $519 million.

The leverage ratio also fell from between 0.139 and 0.142, close to the 6-month low of 0.133. Open interest and leverage were each approximately 12% to 18% lower than their 90-day averages. XRP closed at $1.075 on August 3, failing to recover the $1.1 level.

However, there was no sign of a market-wide forced deleveraging. While XRP fell from $1.143 to $1.061, long and short position liquidations remained relatively balanced. On July 27, long position liquidations amounted to $3.24 million, and short position liquidations were $470,000. On July 29, the gap narrowed to $640,000 and $548,000, respectively. Funding rates also remained between -0.009% and 0.01%, showing a neutral trend.

The Network Value to Transaction (NVT) ratio plummeted by 42.7% compared to the 3-month average. During the same period, the decrease in network transactions was only 23.3%. CryptoOnChain analyzed that XRP's market value declined faster than network activity. Binance deposit addresses decreased by more than 95% compared to the quarterly average, but on July 30, there was an inflow of funds worth $2.3 million.

CryptoOnChain diagnosed that "the market is undergoing a quiet reset process rather than a severe collapse." The weekly Relative Strength Index (RSI) was 33.2, approaching the oversold threshold of 30. The key support level is $1.05, and if that price is lost, the psychological support level of $1 is presented as the next test. To improve the short-term trend, it needs to recover $1.1.

[Article Key Summary]

-XRP open interest and leverage have fallen to 6-month lows.

-Long/short liquidations and funding rates remained balanced, showing a different trend from large-scale forced deleveraging.

-CryptoOnChain analyzed that the market is undergoing an orderly risk reduction process rather than a collapse.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*