XRP Investors Capitulate at Fastest Pace Since 2022 Amid Slide to $1

XRP's decline to $1 has raised concerns about its ability to hold this level, which has become increasingly important as prices have been falling for months. The token fell to $1.02 on Friday, its weakest price since February, and while it recovered slightly afterward, the rebound did little to dispel concerns that the decline may be entering a more damaging phase.

The latest wave of selling was triggered by XRP dropping toward $1.07 on Wednesday, which led to about $9 million in long liquidations, according to CryptoQuant data. This was the largest daily loss for leveraged bullish traders since February 5, with Binance accounting for roughly half of the total.

The liquidations contributed to a wider reduction in outstanding XRP derivatives positions, with open interest on Binance falling to approximately $205 million, its lowest level since March 22. Bybit also recorded a similar pullback, with XRP open interest declining to about $185 million, returning close to levels last seen on June 6.

The contraction in derivatives activity suggests that traders were reducing exposure throughout the market rather than responding to conditions on a single exchange. The reduction could make XRP less vulnerable to large chains of forced liquidations, but it also signals that traders have lost confidence in the prospect of a near-term recovery.