XRP derivative trading enters full throttle in early 2026 with long and short liquidations

XRP went through a round of long liquidations, with Binance leading derivative activity in the first week of 2026. XRP is going through a turbulent period as the price has ranged between $2.39 and $2. 

XRP went through a round of long liquidations in early January, led by activity on Binance. The token recovered above $2 and ranged up to $5 before a correction. 

In the first week of 2026, XRP went through a series of liquidations, first wiping out short positions, then returning with long liquidations on January 6. Following the turbulent days, XRP settled at around $2.12.

In the past year, XRP showed signs that older whales and large-scale holders used retail as exit liquidity. As Cryptopolitan reported earlier, XRP is seen as a potentially hot asset. XRP exchange reserves started to decline in the past few months, with 2.65B tokens available on Binance.

XRP reserves shifted mostly to Binance and Bithumb, while other markets saw significant outflows and lower activity. The concentrated trading on Binance means XRP may react quickly to sentiment shifts, while being exposed to more aggressive trading and market makers.

In the coming months, Ripple removed the speculations about an IPO, stating the company intended to remain private and rely on its $500M raise. 

XRP derivative trading attempts revival after October crash

The first week of 2026 saw the most active derivative trading for XRP. Open interest increased from recent lows, rising to $1.6B after months of low activity. 

In the long term, XRP open interest is yet to return to its peak of $4.89B from the summer of 2025. The slow altcoin season and overall market volatility put XRP in another medium-term freeze. 

The recent price action and liquidations show the market is capable of reacting. Binance was the main venue for liquidations, with over $7M in long liquidations for the past 24 hours. 

Can XRP return as a hot narrative? 

XRP relies on its base of loyal holders, surviving even with whales selling at the top. XRP mindshare is still at 1.2%, based on regular mentions on social media. However, mindshare has only expanded slightly by 1.2% in the past day. 

XRP still awaits a reliable breakout, as the current price action was mostly tied to the activity of derivative markets. The recent price rally also coincided with a price glitch, displaying the price at $9,866. For now, XRP is not seen as making a big breakout, as the focus is still on BTC and its ability to recover the $100,000 price range.

While XRP is viewed with some skepticism on crypto native markets, ETF buying returns. Ahead of the recent hike to $2.35, ETF buying picked up again, reaching the highest level since December 22. 

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