Coinbase Markets has issued a warning about growing stress in the XRP derivatives market, highlighting that an overwhelming share of bullish leveraged exposure is now underwater. According to data cited by the exchange, XRP is trading around $1.31, while a striking 97% of XRP net-long notional exposure was opened at prices higher than the current market price.
The largest cluster of net-long exposure has an average entry price near $1.40, meaning most remaining bullish derivatives positions are currently losing value. Traders now face a difficult choice: they can add to their long positions in hopes of a recovery, or exit to avoid deeper losses.
Coinbase cautioned that if XRP continues to fall, some traders may be forced out of leveraged positions. That dynamic could create additional selling pressure and potentially trigger a self-reinforcing cycle of price declines and liquidations. Conversely, a recovery in XRP could encourage traders to hold or increase their bullish exposure.
The exchange also stressed that the 97% figure does not mean 97% of all XRP investors are underwater. The metric refers specifically to net derivatives exposure, not the broader holder base. The data, based on Glassnode methodology, calculates the difference between outstanding long and short exposure at each entry price level.
There is also notable net-short exposure around $1.49 and $1.50, with the largest negative cluster exceeding $20 million in notional value. The market picture remains unbalanced, though Coinbase noted that entry prices on the chart are not necessarily liquidation prices. Actual forced exits depend on leverage, margin, collateral and other position-specific factors.
