[DigitalToday reporter Yoonseo Lee] Selling pressure in the XRP derivatives market is rising rapidly.

On Sept. 1 (local time), blockchain outlet The Crypto Basic reported that Binance’s XRP perpetual futures cumulative volume delta (CVD) fell to minus $882.1 million on Aug. 31. Open interest has also dropped about 27% since Aug. 22. This is seen as a sign that traders have sharply reduced leverage exposure during the downturn.

XRP rose as high as $1.69 at one point two weeks ago, but later turned lower along with a broader pullback in the crypto market. It has now slipped to $1.34, down about 21% from its peak, and leveraged positions in the derivatives market have also shrunk quickly in the process.

Most of the leverage built up since mid-August has also been unwound. XRP open interest rose from about $232.7 million on Aug. 17 to $323.0 million on Aug. 22, an increase of about $90.0 million over five days. It then fell to $235.3 million, reversing about 97% of that increase.

Still, a decline in open interest alone cannot determine which side of positions was unwound. Open interest shows changes in overall position size, but it cannot distinguish whether the reduction came from longs or shorts. It is therefore difficult to view all of the vanished positions as long positions.

From a market structure perspective, both a positive aspect and a burden are evident at the same time. The reduction in leverage can lower liquidation risk stemming from crowded positions and make market structure healthier. But both perpetual futures and spot CVD posted large negative readings and prices have continued to fall, leaving selling pressure still strong.

The key in this move is not just the price drop but the simultaneous appearance of lower leverage and worsening order flow. With selling dominance continuing in both spot and derivatives markets, XRP would need order flow to improve in both markets to rebound in a sustained trend.