Key Insights:
- XRP fell below $1.30 as open interest dropped 8.49 percent and long liquidations dominated derivatives markets across major exchanges.
- Spot XRP ETFs attracted $2.21 million in net inflows while Bitcoin and Ethereum funds recorded significant institutional outflows.
- XRPL Labs stopped a critical Batch amendment flaw before activation, preventing potential unauthorized fund transfers across network accounts.
XRP traded near $1.29, down 0.96% after losing the $1.30 support level that held for a week. The breakdown extended the ongoing correction and triggered a wave of liquidations across derivatives markets. Consequently, volatility increased as traders reacted to the shift in structure.
Open interest fell 8.49% to $2.15 billion while trading volume climbed 11.49 percent to $5.07 billion. This combination confirmed forced liquidations rather than gradual profit-taking.
Long Positions Face Heavy Losses
Total liquidations reached $12.76 million, with long positions accounting for $11.85 million. Besides, Binance data showed a long to short ratio of 2.24 for accounts and 2.46 among top traders, indicating leverage remained tilted toward bullish bets even after the flush.
Options activity surged sharply during the move. Options volume jumped nearly 420 percent to $8.82 million, while open interest rose 17.01 percent to $42 million. Moreover, the rise in options positioning reflected fresh hedging and speculative trades amid heightened uncertainty.
ETF Flows Show Institutional Divergence
Spot XRP exchange traded funds recorded $2.21 million in net inflows on February 27, according to SoSoValue data. However, broader crypto ETF flows moved in the opposite direction that same day.
Bitcoin funds saw $27.55 million in outflows, while Ethereum products posted $43 million in redemptions. Significantly, XRP stood out as institutions added exposure despite weakness in derivatives markets.
Trendline Break Shifts Technical Structure
On the two hour chart, XRP broke below an ascending trendline that supported price action since February lows near $1.15. The Supertrend indicator flipped bearish at $1.35, and the Parabolic SAR aligned at the same level, reinforcing resistance.
Price now tests support near $1.28. A sustained move below this zone exposes the $1.20 to $1.15 demand area that previously fueled recovery.
XRPL Labs disclosed a critical vulnerability in the pending Batch amendment on February 27. Developers identified a loop error in batch signature validation logic that could have enabled unauthorized fund transfers.
Validators rejected the amendment before mainnet activation. Additionally, developers released rippled 3.1.1 to block deployment and introduced a revised BatchV1_1 version for further review.
