XRP Surges Above $1.40 as $8 Million Short Squeeze Fuels Rally

Summary

• XRP rose above $1.40 as short liquidations reached $8.05 million, forcing bearish traders to repurchase the cryptocurrency at higher prices.
• Futures turnover surpassed spot volume fourfold, while open interest reached $3.05 billion as leveraged market participation expanded significantly across exchanges.
• Bullish positioning dominated Binance and OKX, although crowded leverage could magnify losses if XRP reverses and triggers widespread forced selling.

 

XRP surged above $1.40 as forced short liquidations accelerated buying across major cryptocurrency derivatives exchanges. According to CoinGlass data, XRP gained 8.4% within 24 hours and traded near $1.402.

This advance lifted the cryptocurrency’s market capitalization to approximately $88 billion while pressuring traders positioned against further gains. Exchanges liquidated about $10.41 million in leveraged XRP positions during the measured period.

Short traders absorbed $8.05 million of those losses, compared with $2.36 million from bullish positions. Consequently, bearish wagers represented roughly 77% of all XRP liquidations, highlighting the scale of the squeeze.

Pressure intensified over four hours, when total liquidations reached approximately $1.06 million. Shorts accounted for nearly $1.02 million, leaving only a limited portion linked to long positions.

Automatic exchange closures forced short sellers to repurchase XRP when their margin balances became insufficient. Those purchases added demand to an advancing market and helped strengthen the move beyond $1.40.

Also Read: Grayscale Zcash ETF Sets 3-for-1 Share Split as Mining Competition Grows

Derivatives Activity Strengthens XRP Rally

XRP futures volume climbed to about $5.51 billion over 24 hours, while spot volume reached approximately $1.29 billion. Therefore, derivatives turnover exceeded spot activity by more than four times, showing leverage dominated market participation.

Open interest also reached $3.05 billion as traders established additional futures exposure during the price increase. Rising prices alongside expanding open interest generally indicate new leveraged positions, rather than only contract closures.

Binance recorded about $1.54 billion in XRP futures volume, representing growth exceeding 68%. Meanwhile, OKX volume increased nearly 81% to $613 million, while Bybit handled approximately $631 million.

Additionally, Kraken registered growth above 150%, whereas Coinbase futures activity increased by almost 120%. These gains showed that speculative demand expanded across several leading trading platforms rather than one exchange.

Trader positioning also leaned bullish across Binance and OKX. Binance’s XRP long-to-short account ratio stood at 2.37, while its leading traders posted a higher 2.76 ratio.

OKX recorded a comparable ratio of 2.13, confirming that long accounts substantially outnumbered short accounts. However, crowded leverage could amplify losses if XRP reverses and triggers forced selling.

Also Read: Shiba Inu Bears Lose Ground as SHIB Absorbs Heavy Exchange Inflows

 

The post XRP Surges Above $1.40 as $8 Million Short Squeeze Fuels Rally appeared first on 36Crypto.