XRP faces a double blow as on-chain usage falter and derivatives markets undergo a violent leverage flush. Data from the XRP Ledger shows daily transactions tumbled to roughly 1.74 million in recent days, slipping back below the psychologically important 2 million mark. June has seen a steady erosion in successful transaction counts, signalling waning network engagement at a time when price was attempting to stabilize.
According to market observers, this decline in fundamental usage undermines the conviction behind XRP’s technical rebound. Earlier this month, XRP broke below a multi-month consolidation pattern, briefly sliding toward $1.10. Although bulls managed to push the token back above $1.15, the recovery stalled near the 50‑day and 100‑day moving averages around $1.30. Without a corresponding pick‑up in transaction activity, the price bounce lacked the on‑chain confirmation needed for a sustainable reversal.
Simultaneously, the XRP derivatives market endured a severe shakeout. Open interest across major venues plummeted 14.5% in 24 hours, with Binance’s open interest falling from 255 million to 215.4 million. The plunge in outstanding contracts coincided with a price crack below the $1.19 threshold, with XRP momentarily touching $1.1894. Analysts flagged an aggressive leverage unwinding event: while spot CVD showed a relatively modest decline of negative 158.7 million, perpetual CVD cratered to a staggering negative 802.8 million, highlighting that forced exits of over‑leveraged longs, not organic spot selling, drove the move.
Trading volume surged 32.26% to $2.87 billion, and liquidations totaled $7.41 million – overwhelmingly from long positions ($6.59 million) versus shorts ($812,160). Despite the carnage, top traders remain structurally optimistic: Binance top traders hold a long/short account ratio of 3.2499, and retail accounts also lean heavily long (ratio 2.811).
Looking ahead, a recovery in daily transactions above 2 million could embolden a retest of the $1.30–$1.35 resistance zone. Barring that, XRP risks further consolidation between $1.10 and $1.30. If network activity keeps eroding and price loses the $1.15 support, a return to the $1.05–$1.10 lows becomes the bearish scenario.
