Is XRP Price Flashing a Reversal Signal as Bearish Derivatives Sentiment Deepens?

XRP price hovered near $1.10 after a rough week for leveraged traders on Binance. Falling open interest showed that traders continued reducing exposure across the derivatives market. At the same time, funding rates rose while long liquidations increased sharply. These mixed signals now place XRP price near a possible reversal point, although downside risks remain.

XRP Price Prediction: Derivatives Data Tests $1.08 Support

XRP price fell 4% over seven days but still held above the important $1.08 support zone. The token had recovered to $1.18 on July 4 after losing 22% during June. Sellers then pushed the price back to $1.08 by July 8. XRP price later moved toward $1.10 and kept a 6.62% gain for July.

The next price move may depend on whether buyers defend $1.08 during another funding adjustment. A clear break below that level could expose XRP to renewed selling from leveraged long positions. However, a move above $1.16 would improve the short-term structure. A later break above $1.18 could confirm stronger demand and reduce immediate pressure.

Traders now watch these levels as the derivatives market searches for firmer balance after several weeks of reduced leverage. Price stability above support could limit forced selling, while a renewed breakdown could extend the current correction and delay any broader recovery attempt from buyers.

XRP Binance Spot Flows Show Heavy Position Changes

Binance recorded strong XRP spot activity between July 4 and July 8. On July 7, traders sent 64.9 million XRP into Binance. They removed 49.2 million XRP during the same day. The difference created a net inflow of about 15.7 million XRP.

Spot activity therefore increased without producing a matching rise in leveraged demand. This pattern shows that market participants continued repositioning during unstable price conditions.

Open Interest Falls as Long Liquidations Rise

Binance XRP open interest stood above $500 million in mid-June. It dropped to $431 million by July 4 and reached $399 million by July 10. The market removed more than $100 million in leveraged exposure within about three weeks. Traders, therefore, reduced risk while XRP crypto moved through a volatile correction.

Long liquidations rose 94% from the previous week and exceeded the three-month average by 172%. Short liquidations fell 53% during the same period. These figures show that bullish positions carried most liquidation losses. Repeated failures near resistance forced many leveraged buyers to close positions as prices weakened.

Funding Rates Create a Possible Reset Signal

Binance funding rates briefly turned negative near the end of June. They later climbed 266% week over week and reached 0.007. The increase occurred while open interest continued falling. Remaining long traders therefore paid higher funding costs despite a smaller derivatives market.

Markets often reset funding when rising costs combine with falling participation and heavy long liquidations. Another price decline could force more long positions to close and lower funding rates. However, deeply bearish positioning can also support a later recovery when sellers lose momentum. CryptoQuant analyst Darkfost compared the setup with April 2025, before XRP gained 126%.

On-Chain Data Shows Early Stability

XRP crypto active addresses remained 11% below their three-month average. This gap showed that broad network participation had not fully recovered. Transaction counts still increased by about 3% to 4% across the past week and month. However, transactions remained 21% below the three-month average.

The network value-to-transactions ratio also declined during the period. A lower ratio can reflect improving network use relative to market value. The on-chain figures therefore showed more balance than the derivatives data.