XRP: Main Bearish Target in the Derivatives Market
Recent derivatives market data highlights extremely bearish sentiment among major traders, with a sharp focus on XRP. Net short positions generally dominate among major coins, but XRP shows the most extreme divide between bets on price declines and bets on price increases.
Comparative analysis shows clear movements:
Bitcoin ($BTC): Despite a short position of $131 million, the long position of $70 million still provides support, resulting in a short to long ratio of about 1.87:1.
Ethereum ($ETH): The situation is similar, with $110 million short and $58 million long, providing a ratio of about 1.9:1.
Solana ($SOL): With $34 million short and $13 million long, this ratio is slightly higher, at about 2.6:1.
However, XRP stands out with an exceptionally aggressive position:
XRP ($XRP): Traders have accumulated a SHORT position worth $15 MILLION, while LONG support is virtually nonexistent, at only $0.6 MILLION. This results in a shocking short to long ratio of 25:1!
Market Implications
This figure indicates that XRP has become the most aggressively targeted short among major coins. The lack of long positions shows a lack of confidence among derivative bulls to support the price, while bears feel very confident that XRP's price will decline.
This extreme concentration of short positions creates ideal conditions for a devastating "Short Squeeze" event. If XRP's price starts to move upward due to any catalyst (e.g., strong fundamental news such as ETF developments or legal progress, or buying pressure from the spot market), the $15 million short traders will be forced to buy back (liquidate) their positions. This forced buying action can trigger a very rapid and sharp price spike.
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