Headline: XRP caught in leverage reset as Binance-led liquidations drive short-term price swings XRP’s recent price action looks less like a clear directional breakout and more like a leverage reset, after multiple waves of forced liquidations swept derivatives books across major exchanges between 5–7 January. What happened - Liquidation trackers (CryptoQuant) show repeated forced unwinds across exchanges, with Binance consistently responsible for the largest share. - The market saw sharp shifts between short and long liquidations as price slipped from roughly $2.35 on 5 January to about $2.20 by 7 January, instead of producing sustained follow-through. Day-by-day snapshot - 5 January: XRP traded near $2.35. Short liquidations surged to roughly $24.4m versus about $3.9m in long liquidations. Binance accounted for nearly $8m of the short-side wipeout, dwarfing activity on Bybit, OKX and others. - 6 January: The dynamic flipped — long liquidations jumped to ~$22.9m while shorts fell to just under $9m. Binance again led the flow, with Bybit and OKX also seeing notable long-side liquidations. Price drifted toward $2.30. - 7 January: Liquidation pressure eased but stayed skewed to longs, with about $8.4m wiped out on the long side versus less than $1m in shorts. XRP traded closer to $2.20. Why this matters - The pattern — liquidation spikes during both brief rebounds and subsequent pullbacks — points to widespread deleveraging and unstable derivatives positioning, not a classic directional squeeze or spot-led accumulation. - Coinglass positioning data (as of 7 January) shows longs still dominated the market (~69% of positions; long-to-short ratio near 2.3). That long-heavy bias, combined with continued long liquidations, suggests traders kept rebuilding bullish exposure into weakness only to be forced out again when price failed to hold. Takeaway XRP appears trapped in a leverage-heavy environment where derivatives flows are dictating short-term moves. Binance remains the focal point for liquidation pressure, but the broader signal is fragile conviction and repeated position resets rather than trend confirmation. Until liquidation activity drops and open interest/positioning stabilizes, expect XRP’s price to be highly reactive to derivatives-driven liquidations rather than sustained spot demand. Sources: CryptoQuant, Coinglass Disclaimer: This content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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