As of June 10, XRP perpetual futures funding rates averaged 0.016%, rising from 0.010% a month earlier—marking the highest level in about three weeks. Despite total open interest declining from $1.67 billion in mid-May to around $1.63 billion, traders on platforms like Binance have increased leverage exposure by approximately 3.8%, nearing the all-time peak leverage ratio of 0.324.

This contrast—less overall contract size but higher per-coin leverage—signals that while large positions may be unwinding, traders are tightening holds and intensifying risk per unit of exposure. Funding costs being elevated suggest a persistent willingness to maintain bullish positions amidst a tempering of spot interest.

In the spot market, cumulative taker volume delta (CVD) over 90 days has dropped by about 3.3% since May 11, the first sustained decline after steady accumulation. Meanwhile, the XRP taker buy/sell ratio hovers just below parity at 0.958, up marginally from 0.905, indicating a lack of strong directional bias.

Collectively, these trends suggest a precarious state: traders holding leveraged long positions at elevated costs, but without robust spot demand to justify extended optimism. As noted by analysts, such conditions can lead to sharp breakouts or forced liquidations if spot momentum fails.

Why It Matters

• Elevated leverage and funding heighten short-term liquidation risks.

• Weak…