- Over 70% of Binance traders have taken long positions on XRP despite a 16% price drop.
- Analysts caution that the heavy bias toward long positions could trigger a downside move if key support levels fail.
Despite a notable decline in XRP’s price, a majority of Binance traders continue to take bullish positions on the token. Over 70% of open XRP futures contracts on Binance are currently long, a sign that most traders anticipate a reversal in price despite the current market volatility.
The token is down approximately 15.59% over the past 24 hours and is currently trading around $1.78. Still, traders appear to view the recent decline as temporary. Many traders interpret the sell-off as an overreaction, with expectations that XRP will soon recover, citing the asset’s previous resilience and its consistent ranking among the most actively traded altcoins.
XRP reached an intraday high of $2.09 on April 6 before falling sharply. The price swing is a reflection of the high volatility that traders on Binance are attempting to leverage. The overall crypto market has also experienced increased volatility, driven partly by the external macroeconomic developments, including new U.S. tariffs that have caused a global risk aversion. These dynamics have weighed on digital asset prices, with XRP among the hardest hit.
Regardless of the negative price action, bullish sentiment on Binance remains strong, driven by the belief that XRP’s fundamentals remain intact and that the recent decline is caused by market sentiment rather than structural weakness in the protocol itself.
Analysts Caution Against Herd Mentality in Leveraged Markets
While Binance traders continue to favor long positions, some analysts are warning that such crowded trades can serve as contrarian indicators. When a large majority of traders are positioned in one direction—especially in a highly leveraged environment—the market is often prone to sharp corrections.
In the case of XRP, analysts point to the high risk of forced liquidations. Should the token fail to maintain key support levels, it could trigger stop-loss orders and margin calls following the downward move.
The current imbalance in long positions increases the likelihood of a short-term shakeout, particularly as geopolitical uncertainty and regulatory developments continue to influence market behavior.
Tokens such as Bitcoin and Ethereum have also struggled to build sustained trends due to an overall lack of bullish conviction. The short-term outlook for XRP will likely be shaped not only by internal technical levels but also by external factors, including macroeconomic shifts and investor sentiment across global risk assets.
While long interest from Binance traders shows strong confidence in a price rebound, the data explains the importance of risk management in volatile market conditions.