XRP Derivatives Rocket 5,674% in $2.51 Billion Market Bloodbath, What to Watch Now?

XRP saw a significant volume surge on a major derivatives exchange, even as the broader crypto market intensified its weeklong sell-off on Friday.

In the last 24 hours, $2.51 billion were liquidated in leveraged bets across the crypto market, according to CoinGlass data. A total of $2.03 billion of this figure was long positions expecting the market to rebound, while short positions accounted for $475.66 million.

Amid the crash, XRP’s futures volume rose 5,674% in the last 24 hours to $214.89 million on the Bitmex crypto exchange, even as the market traded lower.

Cryptocurrencies have been on shaky ground following a brutal sell-off last October, which sapped market confidence. Selling increased this week, in line with an unwinding of leveraged bets and broader market volatility.

At the time of writing, XRP was down 0.18% in the last 24 hours to $1.36, a low last seen in November 2024, when it rose sharply by nearly 300%, from $0.49 to $1.95.

What to watch now?

Open interest (OI) has declined in futures tied to major cryptocurrencies, including XRP, which was down 6.57% in the last 24 hours to $2.46 billion. Crypto market sentiment has also fallen to its lowest level since the FTX collapse, as the  Crypto Fear and Greed Index fell to 9, signaling “extreme fear,” with traders adjusting their positioning amid the market crash.

In previous cycles, extreme fear has often coincided with local bottoms, mostly because panic sentiment tends to flush out leveraged traders and short-term holders. This rebound scenario will be watched for in coming sessions.

For economic data, investors will be looking out for the University of Michigan’s consumer sentiment index, which is due to be published at 10:00 a.m. ET.

The release of the key nonfarm payrolls report for January, initially due Friday, is now expected on Feb. 11.

Next week, investors will be watching the release of the consumer price index report for January, which has also been delayed till Feb. 13, two days later than originally scheduled.

In RLUSD news, Bitrue has listed 10 new Ripple USD stablecoin trading pairs, including BTC/RLUSD, ETH/RLUSD, XRP/RLUSD, SOL/RLUSD, TRX/RLUSD, ADA/RLUSD, BNB/RLUSD, DOGE/RLUSD, SUI/RLUSD and HBAR/RLUSD.