XRP Derivatives Data Shows Buyers Still Not in FOMO Mode Despite Recent Rally

While XRP has recovered from the $1.02 area where it traded for some time, new derivatives data suggests that buyers have not yet entered full FOMO mode.

XRP recently climbed from around $1.00 to nearly $1.70 before pulling back to the current price of $1.36. However, the Binance Taker Buy/Sell Ratio currently stands at 0.92, showing that sellers remain more active than buyers in the derivatives market. 

With the ratio still below 1 while XRP’s price rises, the data suggests that the recovery has yet to receive strong buying support from derivatives traders.

In simple terms, XRP has gained ground, but buyers have not taken full control of the market. Profit-taking and short-term selling may still be affecting price action following the previous rally. 

XRP’s market capitalization shows a similar pattern. It immediately rose from around $63 billion to nearly $107 billion by Aug. 22 before falling back to about $85.2 billion.

The decline in market capitalization does not necessarily signal a major problem, as XRP remains well above its previous low. However, the failure to set a new high after reaching around $1.69 suggests that the rally has lost some momentum.

XRP Approaches an Important Price Zone

XRP currently trades around $1.36 and is approaching a key area within the Ichimoku structure. This makes the $1.35-$1.40 range an important short-term decision zone.

If the Taker Buy/Sell Ratio moves above 1, it would provide evidence that buyers are gaining control and that the recovery could continue.

Past XRP price recoveries have often coincided with rising Taker Buy/Sell Ratios, while readings that remain below 1 have pointed to continued selling pressure. Based on the chart, the risk of sideways or slightly lower price action remains higher in the short term unless buying pressure picks up.

XRP Derivatives Activity Raises Leverage Concerns

At the current price, XRP’s futures open interest stands at $2.52 billion and 24-hour derivatives volume reaches $2.24 billion. Spot volume, by comparison, sits at just $386 million.

The large difference between derivatives and spot activity suggests that derivatives trading played a major role in the recent rally, instead of the move coming mainly from spot buying.

Leverage has also increased. The estimated leverage ratio climbed to 0.193, close to the six-month high of 0.213. Funding rates have averaged 0.006, which remains above the quarterly baseline.

This buildup in leverage later saw an unwind. Long liquidations reached $25.7 million on Aug. 22, marking the largest single-day total over the past six months. Funding rates have since fallen from 0.010 to 0.002, while open interest has dropped 13% from its peak.

These changes show that traders have reduced some of the leverage built up during the recovery. The market now appears to be going through a period of deleveraging instead of showing signs of heavy FOMO.

XRP Exchange Flows

Meanwhile, on-chain exchange flows show a more positive sign. Binance deposit addresses have fallen to just 45, a 91% decline from the quarterly baseline. At the same time, average XRP outflows have reached 298,660 XRP, compared with average inflows of only 136,319 XRP.

The higher outflows suggest that XRP exchange supply is tightening even as the price pulls back. If this trend continues and spot demand increases, the lower exchange supply could provide support for the next move.