Data from CryptoQuant analyst Amr Taha reveals a sharp leverage reset on Bybit's XRP futures market. Open interest dropped to $181 million from a peak of $283 million on May 22, a 36% decline that marks the exchange's lowest level since February 13. Taha attributes the drop to a large-scale deleveraging event where leveraged traders either closed positions voluntarily or were liquidated as prices fell.
Binance Traders Stay Put
The same trend did not materialize across all major exchanges. Binance's XRP open interest held near $246 million, only slightly below the local high of $252 million reached on June 2. Binance traders maintained their exposure despite broader market weakness, creating a notable divergence in XRP derivatives positioning. Binance now accounts for roughly 54% of total XRP futures volume, making its order book a key indicator to watch.
Long Liquidations Fueled Selling Pressure
Liquidation data reveals the source of downward momentum. As XRP slid toward $1.05, long liquidations dominated the market, with several events exceeding $3.5 million and some approaching $5 million during periods of heightened volatility. Short liquidations remained limited. The imbalance indicates bullish leveraged traders absorbed most of the pressure, with forced closures adding further selling momentum.
Derivatives activity stayed elevated throughout the correction. On June 5, Binance recorded roughly $1.85 billion in XRP futures volume, followed by Bybit at $727 million, OKX at $429 million, and Bitget at $423 million. Combined volume across the four exchanges reached approximately $3.43 billion.
XRP Rebounds 8% as Liquidation Shock Fades
Despite the liquidation-driven decline, XRP recovered from a local low of $1.055 to above $1.14, a gain of more than 8%. The rebound suggests the sell-off was driven by forced unwinding of leveraged positions rather than a fundamental collapse in demand. As liquidation pressure eased, buyers returned, stabilizing the price. Binance remains the key exchange to monitor — its open interest is still hovering near recent highs, and any shift could signal the next major move.