XRP has fallen back to around $1.42, showing a clear cooling down after a recent round of rapid gains. This decline is mainly driven by deleveraging in the derivatives market, rather than a complete withdrawal of spot funds. Meanwhile, XRP spot ETF still maintains net inflows, leading to a divergence in short-term trends.
ETF One-day inflow sees a rise
On August 26th, XRP spot ETF recorded a net inflow of $28.14 million, achieving the strongest single-day performance in over 7 months. The cumulative inflow into related funds is still close to $1.62 billion, indicating that institutional demand for XRP has not significantly weakened.
- One-day net inflow was 28.14 million US dollars.
- Cumulative capital inflows approach $1.62 billion
- Reaches the highest single-day level in over 7 months
Mass liquidation of long positions
Before the callback, XRP had risen by nearly 70% in just two weeks, approaching $1.70 at one point. The rapid increase attracted a large number of leveraged long positions into the market, making the market positions increasingly crowded.
After the sentiment weakened, liquidations rapidly increased. Data shows that more than $20 million in long positions were cleared, with net buying volume turning negative by $96 million, while the number of open contracts rose to over $3.4 billion.
$1.40 becomes a short-term support level
Currently, $1.40 is regarded by the market as an important support level for XRP. If the price remains above this level, the recent upward trend has not been completely disrupted, and capital inflows into ETF may also continue to provide support.
If it falls below $1.40, the adjustment range may further expand. The reason is that the open interest in unliquidated contracts remains high, indicating that the derivative positions have not been fully cleared, and short-term fluctuations may continue to remain at a relatively high level.
