XRP Traders Face High Risks With $2.36 Billion in Leverage

XRP is currently trading near the critical $1.03 level, hovering just above a threshold that market watchers view as a major test for the token. Recent data shows a shift in how traders are positioning themselves, with open interest moving between exchanges. While Binance historically held the most stablecoin margined open interest, Bybit has recently taken the lead, holding approximately $229 million compared to Binance at $186 million.

The total derivatives open interest for XRP sits near $2.36 billion, which is more than six times the daily spot trading volume. This gap suggests that a large portion of the market activity is driven by borrowed capital rather than actual asset purchases. Because of this concentration, any sudden price drop could trigger a chain reaction of liquidations that forces the price down even further across all trading platforms.

Market analysts are keeping a close watch on the $1.04 support zone. If XRP holds this level and sees a drop in open interest alongside flat funding rates, it may signal a healthy cooling off period that allows for a rebound toward $1.20. However, if the price slips below $1 and leverage remains high on platforms like Bybit, it could lead to increased selling pressure.

The broader market environment remains cautious, with Bitcoin also facing its own support tests. Traders should monitor whether spot buying power can absorb the current leverage or if the market is headed for a sharper correction toward the $0.95 range. With so much debt tied to the token, the next few moves for XRP will likely depend on how quickly these leveraged positions are managed.