XRP traded near $1.29 after slipping below the $1.30 psychological level that held through the past week. The token lost 0.96% on the day, extending its ongoing correction. Derivatives data revealed a sharp unwind in leveraged positions, amplifying downside pressure across major exchanges.
Open interest dropped 8.49% to $2.15 billion, while trading volume surged 11.49% to $5.07 billion. The divergence signals forced liquidations rather than routine profit-taking. Total liquidations reached $12.76 million, with long positions accounting for $11.85 million.
Bullish Leverage Persists Despite Flush
Binance data shows the long/short ratio at 2.24 for all accounts and 2.46 among top traders. This positioning reflects continued bullish leverage even after the latest flush. Traders maintain directional bets amid mounting short-term volatility.
Options activity surged: volume jumped nearly 420% to $8.82 million, and open interest rose 17.01% to $42 million. Market participants are building new positions as price swings widen.
ETF Flows Reveal Institutional Divergence
Spot XRP exchange-traded funds recorded $2.21 million in net inflows on February 27, according to SoSoValue. That same day, Bitcoin products saw $27.55 million in outflows and Ethereum funds posted $43 million in redemptions. The divergence highlights selective institutional positioning.
Institutions appear to accumulate XRP even as retail derivatives traders exit leveraged trades. The contrast between ETF inflows and liquidations suggests different time horizons among market segments—institutional flows move slower and reflect broader allocation strategies.
Technical Breakdown Targets Lower Zone
On the two-hour chart, XRP broke below an ascending trendline that supported price action since February lows near $1.15. The Supertrend indicator flipped red at $1.35, and the Parabolic SAR now sits as resistance at the same level. Short-term momentum has turned bearish.
XRP now tests support around $1.28. A sustained move below that level exposes the $1.20-$1.15 demand zone, which previously triggered a rebound. Losing that range could open the path toward $1.10.
Critical Vulnerability Patched on XRP Ledger
XRP Ledger developers identified a critical flaw in the pending Batch amendment before it reached mainnet. The vulnerability could have allowed attackers to bypass signature validation and move funds without private keys. Validators voted down the amendment after disclosure.
An emergency software update, rippled 3.1.1, prevented activation; a corrected version named BatchV1_1 remains under review. Additionally, XRPL Labs confirmed it will integrate AI-assisted code audits into its development workflow.