XRP saw a sharp reset in the derivatives market after a recent sell-off. On Bybit, open interest dropped to $181 million, its lowest level since February. This is about a 36% fall from the May peak near $283 million, showing that many leveraged long positions were cleared out.
Liquidation data shows the same pattern, with long positions making up most of the forced exits. Some liquidation events went above $3.5 million.
Despite the drop, XRP recovered more than 8% from its recent low of $1.055. This suggests the move was mainly driven by leverage being unwound, rather than a broad drop in demand.
Binance stability highlights split market positioning
Exchange positioning was uneven across platforms. On Bybit, open interest dropped sharply, while Binance held steady at around $246 million, only slightly down from its recent high of $252 million. This shows a split in market behaviour, with Bybit seeing most of the deleveraging while Binance traders kept higher leverage in place.
Futures trading volumes also stayed strong across major exchanges, including Binance, Bybit, OKX, and Bitget. Even as positions shifted between platforms, overall activity remained high.
Macro pressure adds to crypto volatility
Broader market conditions also added pressure to crypto. Strong US jobs data lowered expectations for near-term rate cuts and pushed bond yields higher. There is also talk of possible tighter policy later in the year. At the same time, rising geopolitical tension and profit-taking in big tech stocks added to a risk-off mood.
Analysts say crypto is now more sensitive to macro news. Short-term price moves are being driven more by liquidity changes and economic data than by basic demand.
Traders are now watching if XRP can stay above recent support levels as derivatives positions settle across major exchanges. If open interest starts to rise again without heavy liquidations, it could show a more stable setup. But analysts warn that macro swings are still the main driver. Crypto may continue reacting strongly to economic reports and global events. For now, the market is still adjusting, with leverage cycles playing a bigger role than spot demand in short-term price moves.
Meanwhile, large XRP holders moved 122 million XRP off Binance on May 22, marking the biggest day of whale withdrawals from the exchange since February. The data only includes transactions larger than 1 million XRP each, making it a measure of activity from major holders rather than retail traders.
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