Key Insights
- XRP fell below $1.30 as open interest dropped sharply and long liquidations dominated derivatives markets, reflecting forced unwinds across exchanges.
- Spot XRP ETFs recorded $2.21 million in inflows even as Bitcoin and Ethereum funds posted sizable outflows on the same day.
- Developers halted a critical XRP Ledger vulnerability before activation and released an emergency update to protect user funds.
XRP trades near $1.29 after slipping below the $1.30 psychological level that held through the past week. The token lost 0.96 percent on the day and extended its ongoing correction. Moreover, derivatives data shows a sharp unwind in leveraged positions, which amplified downside pressure across major exchanges.
Open interest fell 8.49% to $2.15 billion while trading volume jumped 11.49% to $5.07 billion. Consequently, the shift signals forced liquidations rather than routine profit taking. Total liquidations reached $12.76 million, and long positions accounted for $11.85 million of that amount.
Bullish Leverage Remains Despite Flush
Binance data shows the long to short ratio at 2.24 for overall accounts and 2.46 among top traders. Additionally, this positioning reflects continued bullish leverage even after the latest flush. Traders appear to hold directional bets despite mounting volatility in the short term.
Options activity increased sharply during the same session. Options volume climbed nearly 420 percent to $8.82 million, while options open interest rose 17.01% to $42 million. Hence, market participants are building new positions as price swings widen.
ETF Flows Signal Institutional Divergence
Spot XRP exchange traded funds recorded $2.21 million in net inflows on February 27, according to SoSoValue data. Significantly, the inflows arrived on a day when Bitcoin products saw $27.55 million in outflows and Ethereum funds posted $43 million in redemptions. This divergence highlights selective institutional positioning.
Institutions appear to accumulate XRP even as retail derivatives traders exit leveraged trades. Moreover, the contrast between ETF inflows and liquidations suggests different time horizons between market segments. Institutional flows often move slower and reflect broader allocation strategies.
Technical Breakdown Targets Lower Zone
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 red at $1.35, and the Parabolic SAR now sits near the same level as resistance. Consequently, momentum has turned bearish in the short term.
XRP now tests support around $1.28. A sustained move below that level exposes the $1.20 to $1.15 demand zone, which previously triggered a rebound. Losing that range could open the path toward $1.10.
Developers at the XRP Ledger identified a critical flaw in the pending Batch amendment before it reached mainnet. The vulnerability could have allowed attackers to bypass signature validation and move funds without private keys. Validators voted down the amendment after disclosure.
An emergency software update, rippled 3.1.1, prevented activation, and a corrected version named BatchV1_1 remains under review. Additionally, XRPL Labs confirmed it will integrate AI assisted code audits into its development workflow.
