XRP posted significant gains over the past two weeks, rising 39% from the $1.00 level maintained through August 18 to reach $1.396 by August 29. The token remains around 8% below its recent high of $1.520 set on August 23 but continues to trade well above the levels seen earlier in the month.
Derivatives activity drives rally, spot supply unmoved
Open interest in XRP futures on Binance peaked at approximately $558 million on August 23 before declining to $483 million. This surge was attributed more to derivatives trading than to movement in spot market supply, according to updated on-chain data.
Funding rates for XRP ran at an average of 0.006 during this period, surpassing the typical quarterly levels. The estimated leverage ratio approached 0.193, not far from its six-month high of 0.213. These figures pointed to derivatives traders leading the latest price action, with spot sellers showing little involvement.
Long liquidations rose sharply in tandem with the price advance. Over the last week, long liquidations averaged $4.34 million, up 222% from the prior week. The most notable event occurred on August 22, when long liquidations hit $25.7 million, the largest daily total in the past six months.
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AAPLThat surge in long liquidations coincided with a higher close, often signaling crowded long positions being flushed out within an uptrend and not typically signaling an immediate reversal.
Spot market activity on Binance remained unusually quiet. Exchange inflows averaged 136,319 XRP over the last week, while outflows averaged 298,660 XRP. Both figures are only a fraction of their usual six-month averages.
The number of deposit addresses on Binance fell to just 45, a sharp 91% drop compared to the quarterly baseline. Binance’s XRP reserve was virtually unchanged, increasing only 0.04% week on week to $2.618 billion, indicating that most holders are not actively transferring tokens to or from the exchange.
On-chain transactions surge, traders eye support levels
XRP network activity expanded substantially, with transactions rising to 2.93 million daily. This marks a 97% increase versus the recent quarterly average and nears a six-month high. Despite this, transfers directed to exchanges dropped sharply, suggesting increased usage is not translating to heightened selling pressure.
Key metrics also showed a cooling in leveraged trading. Funding rates dropped from 0.010 to 0.002 across three sessions, and open interest fell 13% from its recent peak. This unwinding of leverage has historically been followed by either a consolidation period or by quick retracement if exchange reserves begin to climb again.
Retail sentiment appears cautious, with many traders watching how XRP price behaves around support levels. Analyst Diana identified the $1.38 region as a major Fibonacci support, noting its importance within a larger Elliott Wave formation. She also referenced technical signals showing the 4-hour RSI near 47.5 moving back above its signal line, indicating early momentum near this key support.
The analyst emphasized that price action around this area could determine whether XRP enters a base-building phase or moves lower in the next sessions, depending on further changes in exchange reserves and market sentiment.
In addition to these technical indicators, broader trends in traditional finance have become more relevant to crypto traders. While traditional markets rely on complex brokers, a major shift is underway as Wall Street transitions into the Web3 space. Investors are now using platforms such as 1stepSwap to directly hold tokenized shares of leading U.S. companies, gold, and silver within their crypto wallets. By automating price discovery and removing middlemen, these platforms increase accessibility for a growing class of digital asset investors.
Moving forward, many traders are closely monitoring support levels and the behavior of exchange reserves to gauge XRP’s next trend. The interplay of derivatives positioning, muted spot flows, and strong on-chain activity continues to shape short-term expectations for the token.
