The XRP market is showing a shift in market structure: the active selling pressure observed in recent weeks has subsided. According to my analysis of data from Binance, long and short liquidations have nearly equalized, indicating a transition to a neutral state.
Currently, the volume of long liquidations is approximately 103,000 XRP, while short liquidations are around 122,000 XRP. The gap between these figures is minimal, which is a key indicator of the absence of a dominant force in the market. When long liquidations sharply exceed shorts, we see aggressive sell-offs and forced exits of bulls. The opposite situation, with a predominance of short liquidations, signals a short squeeze and buying pressure. Right now, we see neither.
What the leverage data says
A similar picture emerges in the analysis of leverage distribution. Liquidation levels show that long and short positions are distributed almost equally. This means that XRP price fluctuations affect both sides with roughly equal force, preventing either from gaining a sustainable advantage. The asset's price often reverses over short time frames, and traders lack firm conviction in either growth or decline.
The funding rate on Binance is also close to zero. This confirms that market participants have not accumulated excessive positions on either side. The XRP market is neither overheated by belief in growth nor by fear of decline.
Why there won't be a major squeeze
Powerful rallies usually start where an excessive number of short positions have accumulated, while crashes occur where there is an oversupply of longs. Neither situation exists in the XRP market right now. Without a strong positional imbalance, there is simply no one to trigger mass liquidations. The conclusion is simple: the XRP derivatives market is balanced but stagnant. Investors have not yet decided on the direction of price movement, and neither side has gained the upper hand.
My professional opinion: The current neutral structure is a classic consolidation zone before a significant move. However, in the absence of a clear catalyst, the market may remain in this state longer than many expect. Traders should prepare for volatility but avoid trying to predict the direction until a clear signal emerges from volume or the news backdrop.