XRP Traders Bet Big as Short Positions Soar Amid Accumulation

XRP has been experiencing significant selling pressure in recent times, with its price dropping nearly 14% this month due to the broader selloff led by Bitcoin. At press time, XRP trades around $1.14.

However, despite the ongoing weakness, market data suggests that some investors may be quietly building positions while many traders continue to bet on lower prices.

CryptoOnChain, a verified CryptoQuant analyst, noted that XRP's recent decline has affected network activity, with total transaction counts dropping 25% compared to the previous month. Nevertheless, derivatives data reveals a growing interest in XRP, with Open Interest having grown to 494 million and Estimated Leverage Ratio continuing to rise.

The increasing leverage suggests strong speculation as the asset struggles to recover. Moreover, much of this leverage is coming from traders expecting further losses, with Binance Funding Rates moving into negative territory, averaging -0.006 after falling more than 550% week-over-week.