XRP derivatives open interest on Binance surged to a record $3.9 billion this week before retreating to $3.08 billion, signaling heightened speculative activity. Concurrently, investors accumulated 163 million XRP tokens (worth $519 million) over three days, reflecting renewed confidence despite the cryptocurrency trading 15.3% below its all-time high of $3.66.
Futures market data reveals a bearish tilt, with short positions dominating at 50.77% versus 49.23% longs. This imbalance creates potential for a short squeeze if prices rise unexpectedly. Meanwhile, exchange netflows remained positive at $1.28 million, indicating persistent selling pressure as XRP consolidates between $3.00 and $3.20.
The Network Value to Transactions (NVT) ratio hit a four-month low, suggesting XRP's current $3.17 price is justified by network activity without excessive speculation. Analysts note that reclaiming $3.38 resistance could propel XRP toward new highs, but failure to hold $3.00 support risks a drop to $2.96. The combination of massive accumulation, record open interest, and crowded shorts positions XRP at a critical technical juncture.