What to know:
- Bybit XRP open interest plunged 36%, reaching February’s lowest level.
- Long liquidations dominated selling pressure as leveraged positions exited markets.
- XRP rebounded over 8% while Binance traders maintained exposure levels.
CryptoQuant analyst Amr Taha has identified a major leverage reset on Bybit’s XRP futures market, revealing that the exchange lost more than a third of its open interest during the latest sell-off. His analysis shows that while Bybit traders were forced out of positions, Binance traders largely maintained their exposure.
Bybit Records Major XRP Leverage Flush
According to Taha, the most significant impact of XRP’s recent decline appeared on Bybit, where open interest dropped to $181 million. That marks the exchange’s lowest XRP open interest level since February 13, when it stood near $180 million. The decline represents a substantial reduction from the $283 million peak recorded on May 22. As a result, Bybit lost approximately 36% of its XRP open interest within a few weeks.
Such a decline typically points to a large-scale deleveraging event. It suggests that many leveraged traders either closed positions voluntarily or were forced out through liquidations as prices moved lower.
However, the same trend did not appear across all major exchanges. According to Taha, Binance XRP open interest remained near $246 million, only slightly below the local high of $252 million reached on June 2.
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Source: CryptoQuant
Consequently, Binance traders continued holding positions despite the broader market weakness. This divergence has become one of the most notable developments in XRP’s derivatives market. Binance controls a significant share of XRP futures activity, and market participants are closely monitoring its positioning for signs of the next major move.
Liquidations Reveal Source of Selling Pressure
Liquidation data further explains what happened during XRP’s recent decline. According to Taha, long liquidations dominated the market as prices moved toward the $1.05 level. Several liquidation events exceeded $3.5 million, while some approached $5 million during periods of heightened volatility. Meanwhile, short liquidations remained relatively limited.
Source: CryptoQuant
The imbalance indicates that bullish traders using leverage absorbed most of the market pressure, while forced liquidations added further selling momentum as positions were automatically closed.
Moreover, derivatives activity remained elevated throughout the correction, with Binance recording approximately $1.85 billion in XRP futures volume on June 5, followed by Bybit at $727 million and OKX and Bitget at $429 million and $423 million, respectively.
Combined trading volume across the four exchanges reached roughly $3.43 billion, with Binance alone accounting for around 54% of total XRP futures activity.
XRP Rebounds as Market Absorbs Liquidation Shock
Despite the liquidation-driven decline, XRP managed to recover from its local low. The asset fell to approximately $1.055 before rebounding above $1.14, representing a gain of more than 8%. That recovery suggests the sell-off was heavily influenced by leveraged positions being flushed from the market rather than a complete collapse in demand.
Moreover, the rebound indicates that buyers returned as liquidation pressure eased. This helped XRP stabilize even as derivatives traders continued adjusting their positions. Binance remains the primary exchange to watch. While Bybit has already undergone a substantial leverage reset, Binance open interest continues to hover near recent highs.
In conclusion, Taha’s analysis shows that XRP’s recent decline triggered a significant derivatives reset on Bybit, removing a large portion of leveraged exposure. At the same time, Binance traders largely maintained their positions, making the exchange a key area to monitor as XRP attempts to extend its recovery.
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