Leverage Pullback on Binance Sparks Hope for XRP Rebound

Cryptoquant analyst Darkfost pointed out on October 27 that leveraged bets on XRP at Binance have been shrinking. Open interest has slipped to roughly 445 million dollars, under the 180-day average of 460 million. Since September 22 the figure has dropped 28 percent while the token’s price fell 17 percent over the same stretch.

On October 28, XRP changed hands at 1.31 dollars. The analyst views the deleveraging as a constructive sign that futures pressure is easing and could pave the way for a near-term recovery.

History offers precedent: similar reductions in mid-August preceded a 72 percent rally, and another drop in mid-September was followed by a 32 percent gain.

Part of the decline stems from the price drop itself and forced liquidations, yet Darkfost still reads the overall picture as mildly bullish.

Based on information from cryptonews.net