XRP holders capitulate as token slides to $1.02

XRP fell to $1.02 on Friday, and the token’s 90-day realized profit-to-loss ratio dropped to 0.33, a level last seen in August 2022. The metric measures the value of on-chain gains compared with realized losses.

The price decline accelerated midweek when XRP approached $1.07 and triggered about $9 million in long liquidations, roughly half of which were closed on a single exchange. Those liquidations coincided with a pullback in derivatives positions: open interest on two large derivatives venues fell to about $205 million and $185 million, while total tracked XRP open interest stood near $2.34 billion.

Futures turnover has fallen sharply year-over-year, at roughly $2.84 billion for the comparable period versus more than $30 billion last year, a decline of more than 90%. The reduced turnover and lower open interest reflect smaller volumes of derivatives trading and fewer active leveraged positions.

Long liquidations occur when falling prices reduce the value of collateral for leveraged long trades and exchanges close those positions automatically. When many leveraged positions cluster near the same price levels, automatic closures can add selling pressure.

A 90-day realized profit-to-loss ratio of 0.33 means investors are recording roughly one unit of profit for every three units of loss on on-chain transactions. The reading shows a larger share of on-chain activity has been executed at a loss rather than at a profit.

Risk-adjusted measures for XRP have been weak. The token’s 30-day Sharpe ratio on a major exchange was about minus 0.29, and the Sharpe Z-score was near minus 1.57. Shorter-term momentum readings also remained negative. The perpetual-to-spot volume imbalance was about 0.51 with a 30-day Z-score close to neutral.

The XRP decline came as the broader crypto market weakened. Bitcoin dipped toward $58,100 before recovering near $60,000, and Ethereum traded around $1,550. Total cryptocurrency market capitalization slipped below $2 trillion. Among 85 non-stablecoin assets tracked, 87% fell in June, with an average loss of 8.6% and a median decline of 12.3%. Two of the 10 largest non-stablecoin tokens posted positive returns in the second quarter, including one that gained 72.6% and Tron, which rose 4.1%.

Some traders closed positions voluntarily as prices weakened while others were forced out by liquidations. Open interest and trading volume now reflect fewer active positions and lower capital flows in XRP derivatives markets compared with earlier periods.

Open interest measures the value of outstanding derivative contracts that remain open. Futures volume tracks contracts traded over a period. The realized profit-to-loss ratio compares the value of profits and losses recorded on chain, and the Sharpe ratio adjusts returns for volatility to show risk-adjusted performance.