- XRP open interest on Binance and Bybit fell 26.5%, from 661M to 486M combined.
- Spot CVD worsened by $1.3B, while Binance perpetual CVD weakened by another $688M.
- XRP’s heatmap showed $54.7M in estimated short-liquidation clusters above $1.3388.
XRP derivatives exposure contracted over three weeks as sellers dominated spot and perpetual trading, adding pressure during a price decline. Between September 23 and October 16, combined open interest on Binance and Bybit fell 26.5%, according to figures shared by CryptoQuant analyst Amr Taha.
Cumulative sell-side trading imbalances increased by nearly $2 billion across centralized spot exchanges and Binance perpetuals. Repeated long liquidations provided further evidence of stressed leveraged positions, although the data did not establish the direction of every remaining trade.
Binance and Bybit Shed 175M in Open Interest Amid Heavy Selling
Binance open interest declined from 302 million to 228 million, a 24.5% reduction. Bybit recorded a steeper 28.1% drop, from 359 million to 258 million. Combined readings consequently fell by 175 million, from 661 million to 486 million.
Meanwhile, estimated spot cumulative volume delta, or CVD, deteriorated from negative $1.9 billion to negative $3.2 billion. That represented another $1.3 billion in net aggressive selling. Binance perpetual CVD also weakened, moving from negative $812 million to approximately negative $1.5 billion.
Its additional $688 million imbalance brought the combined deterioration to about $1.99 billion. CVD measures market-buy volume minus market-sell volume. Therefore, these negative readings describe trading pressure, not verified capital outflows or newly opened short positions.
The contraction in outstanding derivatives exposure coincided with repeated long-liquidation spikes exceeding $10 million, including one nearing $17 million. However, falling open interest alone cannot establish whether the remaining positions favor buyers or sellers.
XRP Heatmap Shows $54.7M in Estimated Short Liquidations
An October 16 XRP liquidation heatmap identified two significant short-liquidation clusters above the market. The first held an estimated $23.28 million near $1.3875, while the second contained $31.42 million around $1.4275. Together, they totaled $54.7 million, with XRP trading near $1.3388.
By comparison, estimated downside exposure was substantially smaller. A cluster near $1.3175 accounted for $3.3 million, while another at $1.2775 represented $10.87 million. Their combined $14.17 million placed overhead short-liquidation exposure at roughly 3.86 times the identified downside exposure.
This distinction matters as short liquidations trigger forced buying, whereas long liquidations involve forced selling. Nevertheless, heatmap levels reflect estimated liquidation concentrations, not guaranteed executions.
Meanwhile, declining open interest and persistently negative cumulative volume delta documented selling pressure through October 16. Although larger overhead clusters highlighted potential forced-buying exposure, they did not establish that a price rebound was imminent.
Related: XRP Price Prediction: Can XRP Win Back $1.34 After Losing Its Trendline?
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