• Binance showed $19M in net inflow for XRP, pointing to increased bullish sentiment.

• With the long/short ratios, it is clear that XRP is backed by a large number of traders on major platforms.

• Data on derivatives shows there is plenty of movement, although traders’ commitment remains unclear, suggesting they are mostly making short-term bets.

The cryptocurrency market has seen a sharp spike in XRP activity, particularly on Binance, where a staggering $19.05 million in net inflow was recorded in just 24 hours. Because of this movement, there is now talk about whether XRP’s price could see a rise. A thorough review of the data on this increase gives a clear view of what is going on in both XRP derivatives and spot markets.

High Activity, Low Commitment: XRP Derivatives Show Divergence

According to derivatives data, the trading volume for XRP has seen a massive increase of around 68% in just 24 hours, hitting $6.75 billion. However, not all indicators are moving in a positive direction. At that time, the overall funds in active XRP futures fell by 10.33% to $4.18 billion.

Thus, it becomes clear that even with all the deals, most traders are just taking their gains and reducing their actions in the market. It is also interesting that the data points to a drastic drop in options volume, which plunged by 65.7%, and open interest fell even more sharply by 98.67%. 

This drop suggests that traders are currently less willing to place speculative bets on future price changes via options. On the other hand, most people seem to be focusing on spot and futures trading, probably hoping to gain from the fast swing of price movements.

XRP Longs Stack Up While Shorts Get Wiped

A significant positive sign is seen in the long/short ratio. On Binance, the long/short ratio for XRP/USDT is at 3.43 which means for every short bet made, there are more than three long bets placed too. As a result, Binance users are seen to have a very bullish viewpoint.

Also on OKX, the market sentiment is positive because the long/short ratio also shows that it is bullish, with the ratio being 2.44. The long/short ratio from top traders on Binance for both accounts and positions is also well above 1.6. This underlines their prediction that XRP will move upwards.

Liquidation data also sheds light on market behavior. In the past 24 hours, $32.37 million in positions were liquidated, with long positions accounting for $31.83 million and short positions $544,000. This shows that the market went up sharply, leaving many short sellers scrambling to close their positions, losing money.

Reviewing the exchange flows, the net inflow heat map indicates that Binance’s netflow is much higher than the $7.02 million by Coinbase and the $5.75 million by Bitstamp.

Source: Coinglass