Key Takeaways:
- Bybit XRP open interest fell 36% to $181 million, the lowest since Feb. 13
- Binance held near $246 million, leaving it exposed to sharp price swings
- XRP bounced 8% from $1.055 but spot volume has fallen below its 30-day average
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XRP slips to $1.16 as Bybit open interest collapses 36%
XRP's 36% open interest collapse on Bybit signals the deepest deleveraging since February, testing whether institutional ETF inflows can hold the $1.16 floor.
XRP fell to $1.16 as open interest on Bybit collapsed 36% to $181 million, the exchange's lowest level since Feb. 13. The token touched $1.08 on June 5, its lowest price in 19 months, before recovering.
Bybit's open interest decline shows traders exiting leveraged positions rather than opening new ones, CryptoQuant contributor Amr Taha said in a June 8 analysis. The drop from about $283 million on May 22 represents the sharpest single-exchange deleveraging for XRP this year.
The reset was uneven across exchanges. Bybit's XRP open interest fell 36%, while Binance held near $246 million, only 2.4% below its June 2 peak. Binance processed about $1.85 billion in XRP futures volume on June 5, or 54% of the combined $3.43 billion across major exchanges, per Coinglass data. Several long liquidation events on Bybit exceeded $3.5 million as falling prices forced leveraged traders to exit.
The exchange split leaves Binance vulnerable to another sharp move. With XRP's 30-day liquidity index on Binance at 0.043 — roughly 1% of normal levels seen in 2022-2024 — even modest selling could amplify price swings. XRP bounced more than 8% from a local low of $1.055, but spot volume has already fallen below its 30-day average, suggesting the recovery lacks sustained follow-through.
Institutional Demand vs. Leverage Risk
Spot XRP ETFs pulled in a record $131.94 million in May and another $4.13 million in early June, even as Bitcoin ETFs lost $2.43 billion and Ethereum ETFs lost $540 million over the same period, per Sosovalue data. More than 25 million XRP moved off exchanges in recent days, and wallets holding at least 10,000 XRP climbed to a record 332,230 addresses.
Yet the institutional bid faces headwinds. Ripple's June 1 monthly escrow unlock added 200 million to 400 million XRP in net new supply to a falling market. Short positions on XRP outweigh longs by nine to one, a setup that could fuel a squeeze if buyers return — or accelerate losses if Bitcoin breaks lower.
What Happens Next
Near-term liquidity sits around $1.17 to $1.20, per Coinglass data. A move through that zone could force short sellers to close positions and extend the rebound toward $1.31 and $1.50. Below $1.10, support sits at $1.08, $1.05, and the June 5 low of $1.055. A deeper break could expose $0.90.
The CLARITY Act, which would classify XRP as a commodity under federal law, cleared the Senate Banking Committee in May and was placed on the Senate Legislative Calendar on June 1. Standard Chartered projects the bill could trigger $4 billion to $8 billion in XRP ETF inflows by year-end if passed. Polymarket currently prices a 64% chance Bitcoin tests $55,000 before year-end, a scenario that would put XRP near $1.05 under current correlation ratios.
This article is for informational purposes only and does not constitute investment advice.
