Ripple’s (XRP) decline continued after leveraged buyers lost control, pushing the altcoin down to $1.02, its lowest value since early February. Initially, the price fell towards $1.07 before triggering a long liquidation of nearly $9 million on June 25.
Binance advanced by about $4.5 million, highlighting the concentration of leverage that exists within a single exchange. As forced selling intensified, derivatives traders quickly reduced exposure rather than adding new positions.
Open interest on Binance fell to nearly $205 million, its lowest level since March 22. Meanwhile, Bybit’s open interest fell to around $185 million, reinforcing the domino effect of the disaster.
This concurrent decline indicates that speculative surplus has been largely eliminated from the market. These resets usually take some pressure off the downside because they eliminate leveraged sellers with weak positions.
Otherwise, lower leverage alone may stabilize volatility without generating a sustainable recovery. The next trend move will likely depend on whether new buyers replace liquidated positions or continue to wait on the sidelines.
Demand for ETFs tightens XRP supply
Demand for XRP ETFs is narrowing the supply of available XRP despite market weakness. The net flow was 4.82 million XRP During the 26th week, causing total ETF holdings to rise by approximately 10% to 938.73 million XRP, representing approximately 1% of the XRP currently in circulation.
With each new ETF creation requiring the purchase of additional XRP, this gradual reduction in XRP available on the open market can help limit the amount of sellable inventory or reduce potential selling pressure.
On the other hand, despite the fact that institutional buyers are accumulating large amounts of XRP via ETFs, no corresponding increase in participation from the broader spot market has been seen.
As such, downward pressure on prices continued. In addition to the drop in prices, valuations have also dropped from over $1 billion at one time to $989 million at present.
As such, it appears that institutional purchasing power has increased more than XRP’s valuation.
If ETF inflows continue alongside strong spot demand, shrinking liquid supply could increasingly amplify future price recoveries. Otherwise, accumulation may continue without causing an immediate breakout.
Final summary
- Ripple’s leverage reset has reduced speculative pressure, but a sustainable recovery still depends on the return of new spot demand.
- The XRP ETF accumulation continues to tighten liquid supply, although stronger spot participation remains necessary for a lasting breakout.
