While Traders Slept, XRP Entered a Major Reset Phase

▲ XRP (Ripple) ©

XRP (Ripple) has retreated to the $1.40 level, and analysts suggest it is entering a large-scale “structural reset” phase away from the market’s spotlight.

According to crypto media outlet Bitcoinist on February 27 (local time), XRP has pulled back to around $1.40 despite the broader market rebound, continuing to show volatile price action. Expert Xaif Crypto assessed that XRP has quietly entered a structural reorganization phase based on on-chain indicators and price movements.

A key basis for this analysis is the sharp decline in futures open interest across major exchanges over the past 90 days. Binance saw a reduction of 7.7 million XRP, Bybit more than 12 million XRP, and Kraken 8.3 million XRP, indicating a large-scale liquidation of speculative leverage. This suggests that billions of dollars in speculative capital have exited the market, marking a deleveraging phase in which excessive positions are being cleared.

Xaif Crypto emphasized that such a rapid contraction in open interest represents the shaking out of weak hands, noting that new trends have historically formed following similar cleanup phases. He added, “Smart money does not chase spikes; it enters when the market is quiet,” interpreting the current phase as the early stage of preparation for the next wave of volatility.

Meanwhile, an opposing trend has been observed on Bitrue. Spot buying volume for XRP on the exchange surged 212%, exceeding sell orders by more than double, suggesting continued accumulation by institutional investors. Since the launch of the XRP spot ETF, related funds have recorded total net assets inflows of $1.1 billion, with weekly net inflows continuing.

Bitrue is expanding support under its strategy to position itself as a liquidity hub for the XRPL ecosystem, including using RLUSD as a base trading pair. The outlet assessed the current phase—where leverage is being cleared while institutional capital flows in—as a potential turning point that could lead to a “supply squeeze,” with market attention focused on whether a trend reversal will follow.

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