In the XRP derivatives market, long-position liquidations have surged 832 percent above the average of the past three months, accelerating a reset in leverage.

On June 29 local time, blockchain outlet The Crypto Basic reported that XRP markets have shown a pattern in which excessive leverage in futures and perpetual futures is being cleared before large-scale selling by spot investors.

The key point is that leveraged bullish bets were forced out in a price decline. Over the past month, XRP went through a sharp long-liquidation phase, and in the latest downturn alone, about $3 million worth of leveraged long positions disappeared. In a single liquidation, about $6.7 million worth of long positions was also cleared at once. The market confirmed that long positions were liquidated far more aggressively than short positions.

Open interest also fell quickly. XRP open interest dropped 11.1 percent in a month to about $1.04 billion from about $1.18 billion. Rising liquidations alongside falling open interest is read as a signal that traders are stepping back from the market itself rather than rolling into new positions.

Binance funding rates also deteriorated sharply. CryptoQuant pointed out that Binance funding rates shifted 463 percent versus a quarterly baseline and fell into a deep negative zone. A negative funding rate means short positions have gained a stronger advantage. CryptoQuant said this trend shows bearish positioning has become dominant in the perpetual futures market.

Price performance was also weak. XRP has fallen more than 20 percent over the past three months and is down 53 percent on a yearly basis. Still, there are limited signs that the decline led to broad capitulation by spot holders.

Spot market indicators moved differently from derivatives. Binance's XRP spot reserves fell only 0.35 percent from the previous week. That means there is not a situation in which large volumes are flowing into exchanges for immediate selling. CryptoQuant said stable spot reserves suggest many XRP holders chose not to sell despite recent volatility.

This divergence between derivatives and spot markets is emerging as a factor separating short-term supply and demand. As leveraged short-term traders are cleared out first, long-term holders appear to be holding up relatively better. The market is taking the current split as a more gradual structure than phases when futures and spot markets fall at the same time.

A key point to watch is whether open interest recovers. CryptoQuant said large volatility often follows when deep negative funding rates coincide with exhaustion in long liquidations. That suggests conditions could form for the market to find its next direction after excessive leverage is washed out.

Meanwhile, Ripple's stablecoin RLUSD has recently expanded to Japan through SBI VC Trade, a development cited as a positive long-term factor. Still, short-term price moves are likely to remain more heavily driven by the derivatives market. The core of this adjustment is that XRP's next direction depends more on the speed of position rebuilding in the futures market than on spot selling pressure.