XRP liquidation pressure on Binance eases, CryptoQuant analysis finds
CryptoQuant analysis published on 2 Oct shows XRP liquidation pressure on Binance easing after months of spikes, though sustained gains still hinge on spot demand.
Why it matters: The analysis suggests less forced selling in XRP derivatives, but ETF outflows and weak spot demand remain the test for any sustained recovery.
Key points
- XRP's network value-to-transactions ratio dropped 69.28% to 36.97 in the analysis.
- US spot XRP ETFs saw $3.28 million in net outflows on 2 Oct, all from Bitwise's fund, after $121.4 million of September inflows.
The contributor "PelinayPA" used a chart combining exchange liquidations with a network valuation measure to assess the strain from leveraged trading.
The analyst noted that long liquidations currently exceed short liquidations, suggesting traders positioned for gains have been hit harder by recent downward price moves.
A lower reading can reflect more onchain transfers, a reduced valuation, or both.
Fund flows offer another gauge of demand. The analyst said a sustained rise would need spot buying, trading volume and price structure to support it.
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