XRP shorts have crossed $2 billion in 24-hour volume despite the recent price rebound, as smart money sentiment flips “extremely bearish.”
Notably, XRP fell to $1.25 last Wednesday, Sept. 16, before rising to $1.482 at press time, a move that put more pressure on traders who had bet on further declines.
However, the recovery has not stopped futures traders from adding to their short positions. Despite the predominant short bias, retail traders and whale accounts continue to favor long positions across several major exchanges.
XRP Shorts Move Ahead of Longs Across Exchanges
XRP’s 24-hour taker volume shows a narrow lead for shorts. Specifically, short trades made up 50.67% of the total volume over the past 24 hours, compared with 49.33% for longs. In dollar terms, short volume reached $2.18 billion, slightly above the $2.12 billion recorded on the long side.
In addition to this, data from Binance, OKX, and Bybit also shows a difference between the positions held by various groups of traders on these major exchanges.
On Binance, retail traders posted a 2.25 long/short ratio, which falls into the Bullish category. Whale accounts recorded an even higher 2.62 ratio, rated Extremely Bullish, while Binance whale positions stood at 2.10, also rated Bullish.
OKX showed a 1.91 retail ratio, rated Bullish, while whale positions reached 2.18, also Bullish. However, OKX whale accounts had a 1.00 ratio, placing them at neutral.
Bybit showed the strongest long bias, with both retail traders and whale accounts at 3.12, rated Extremely Bullish. Bybit whale positions stood at 0.98, which was neutral.
Smart Money Takes a Different View
Interestingly, smart money holds a different view. Retail traders and whale accounts generally favor long positions across the three exchanges, but smart money sentiment on Binance and Bybit rates XRP as Extremely Bearish. OKX is the only exception, with its smart money reading Extremely Bullish.
This suggests that some sophisticated or algorithm-driven traders expect the current recovery to lose strength. They may also be using the rally as an opportunity to bet on a reversal. Their bearish view is worth noting because XRP has already climbed 18.5% from its Sept. 16 low.
Short Liquidations Lead Across Every Timeframe
Liquidation data shows that short sellers have taken most of the losses during XRP’s recovery. Total liquidations over the past 24 hours reached $9,463,865. Short positions accounted for $7,984,460, while long positions accounted for $1,479,404.
The same pattern appears across shorter periods. Over the past hour, total liquidations reached $4.67 million, with shorts accounting for $4.55 million and longs just $123,150.
In the last four hours, liquidations reached $5.49 million, including $5.34 million from shorts and $152,640 from longs. Over 12 hours, the total reached $7.31 million, with $6.52 million coming from shorts and $787,370 from longs.
XRP’s price volatility also exceeded 8.28%, forcing 1,928 traders worldwide out of their positions. The largest single liquidation reached $1,047,857 during the 09:00-10:00 peak hour on Sept. 21.
Current liquidation activity stands at 0.70 times the seven-day average and 0.27 times the 30-day recent peak. These figures show that traders are reducing leverage, with overleveraged shorts facing the most pressure so far. However, the market has not yet seen a full liquidation cascade.
Key XRP Levels and What Comes Next
The increased short volume and continued short liquidations could create the conditions for a short squeeze. If XRP holds above $1.48, more short positions could face pressure, potentially adding buying demand, which could push the token toward the $1.60-$1.65 resistance zone.
A break above $1.60-$1.65 could put even more pressure on short sellers, with $1.80 becoming the next major target.
However, the downside bias is still valid. If the bearish smart money view on Binance and Bybit proves correct and XRP’s recovery loses momentum, the $1.35-$1.38 area could provide the first key support. A deeper decline would bring the September 16 low of $1.25 back into focus as the main floor.
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