XRP experienced a dramatic surge in derivatives trading activity, with its 24-hour futures volume skyrocketing 207.74% to $12.4 billion. This volume significantly outpaced competitor Solana’s $9.6 billion over the same period, reflecting heightened trader interest and potential bullish sentiment.
Alongside the volume surge, Open Interest (OI) in XRP futures climbed 15.02%, reaching $5.9 billion. This combination typically indicates traders establishing new positions to capitalize on perceived market direction.
However, concerns are mounting regarding market stability following the unlock of over $3.28 billion worth of XRP from escrow earlier this week. This substantial release, executed in three batches ($1.64 billion, $328 million, and $1.32 billion), presents a risk of augmented selling pressure on the market by increasing the available circulating supply.
The active futures market also creates significant liquidation risks. With $150 million worth of leveraged short positions currently exposed, a continuation of bullish momentum could trigger forced liquidations, potentially amplifying upwards price movement in a short squeeze.
This volatility contributed to XRP ranking as the cryptocurrency with the third-highest 24-hour liquidation totals across the market.