The XRP open interest on Binance is gaining upward momentum following its lows in August to trade at $1.27 billion, reflecting the growth in speculative trading following the recent market hiccup.
The funding rates are neutral, which is the indication of a balanced market situation as purchasers slowly re-enter and the pressure to sell eases.
Estimated Leverage Ratio for XRP has doubled since leaving the accumulation zone, showing rapid growth in speculative leveraged trading activity.
XRP on Binance is experiencing renewed speculative leverage growth, with open interest rebounding while funding rates remain neutral. Traders appear divided as buying activity gradually increases.
Open Interest Recovery Signals Market Activity
Data from Binance shows XRP’s open interest has climbed back to $1.27 billion after a sharp drop in August. In July, when XRP reached a new all-time high, open interest peaked at $1.76 billion. However, during the market pullback in August, it fell to $995 million before beginning its current recovery.
Boris @Fundingvest noted on X that speculative leveraged trading is again on the rise. The recent increase in open interest reflects growing trader participation, although it also introduces the potential for short-term market shifts. The current levels suggest more activity compared to earlier in the month, but without extreme directional positioning.
https://twitter.com/Fundingvest/status/1954177335298531698
Balanced Funding Rates Indicate Investor Indecision
Funding rates on Binance remain within a neutral range, showing a balanced mix between long and short positions. This environment suggests that neither bullish nor bearish sentiment is dominant. Traders appear to be waiting for clearer price signals before taking strong positions.
The Taker Buy/Sell Ratio has moved from a selling bias toward a more balanced level. This shift indicates easing selling pressure and a gradual return of buyers. If buying interest continues to build, market momentum could maintain its upward trajectory.
Rising Leverage Brings Potential for Reversal
Binance data also shows the Estimated Leverage Ratio for XRP has reached notable levels. Since breaking out of its accumulation zone, the leverage ratio has doubled. This surge reflects growing speculative positioning among market participants.
In the past, however, surges in buying appetite and leverage have been precursors to short-term turns in the market. Although it is not an immediate validation of any move, it comes as a warning to trading personnel who run leveraged positions. The current conditions suggest that while buyers are entering the market, elevated leverage requires close monitoring to avoid sudden market swings.
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