Open Interest Crashes 8% – Can $1.20 Hold?

• XRP breaks below $1.30 support as open interest crashes 8.49% to $2.15 billion.
• Volume jumps 11% to $5.07 billion, with $11.85 million in long liquidations.
• XRP ETF inflows reach $2.21M on February 27, in sharp contrast to Bitcoin’s and Ethereum’s.

XRP price today trades near $1.29, down 0.96% after breaking below the $1.30 psychological support that held for the past week. The move extends the correction as derivatives positioning collapses and spot outflows accelerate.

Open Interest Crashes

Open interest crashed 8.49% to $2.15 billion while volume surged 11.49% to $5.07 billion. The combination confirms forced liquidations rather than profit-taking. 

Total liquidations hit $12.76 million, with longs accounting for $11.85 million. The long/short ratio on Binance sits at 2.24 for accounts and 2.46 for top traders, showing leverage remains tilted bullish despite the flush.

Options volume jumped 419.98% to $8.82 million while options OI rose 17.01% to $42 million, signaling fresh positioning and increased derivatives activity amid heightened volatility.

ETF Inflows Reach $2.21M As Institutional Positioning Diverges

XRP spot ETFs recorded $2.21 million in net inflows on February 27, according to SoSoValue data. The positive flows mark institutional accumulation even as the derivatives collapse signal retail capitulation.

The inflows contrast sharply with broader crypto ETF flows. Bitcoin saw $27.55 million in outflows while Ethereum recorded $43 million in institutional redemptions on the same day. XRP’s relative strength in ETF flows suggests institutions view current levels as attractive despite the technical breakdown.

Ascending Trendline Break Targets $1.2

The 2-hour chart shows XRP breaking below an ascending trendline (red dotted line) that supported the price since the February lows near $1.15. The Supertrend flipped red at $1.35, confirming bearish momentum. The Parabolic SAR sits at $1.35, acting as resistance.

XRP is now testing support near $1.28. A sustained break below this level exposes the $1.20 to $1.15 demand zone that previously acted as a springboard during the February correction.

Key levels:

• Immediate support: $1.28
• Critical floor: $1.20 to $1.15
• First resistance: $1.35 (Supertrend and SAR)
• Major resistance: $1.40 to $1.45

Critical XRP Ledger Bug Caught Before Activation

XRPL Labs disclosed a critical vulnerability in the XRP Ledger’s pending Batch amendment on February 27. The bug could have allowed attackers to steal funds from any account without accessing private keys, but it was caught during the voting phase before mainnet activation.

The flaw stemmed from a loop error in batch-signature validation logic. An attacker could construct a batch transaction that bypassed security checks and moved victim funds. Pranamya Keshkamat and Cantina AI’s Apex tool identified the vulnerability through static analysis on February 19.

Validators were immediately advised to vote down the amendment. An emergency release, rippled 3.1.1, was published on February 23 to prevent activation. A corrected replacement called BatchV1_1 is under review with no release date set.

XRPL Labs announced it will add AI-assisted code audit pipelines as standard practice going forward.

Outlook: Will XRP Go Up?

The next move depends on whether XRP can defend the $1.20 to $1.15 zone or if sellers push through to test deeper support.

• Bullish case: XRP holds $1.20 and reclaims $1.35 with rising volume. That flips the Supertrend and Parabolic SAR back to support, signaling the correction has ended.
• Bearish case: A daily close below $1.20 exposes the $1.15 demand zone. Losing that level opens the door to $1.10 and potentially sub-dollar prices.

Related: Ethereum Price Prediction: ETF Exodus Drags Price Below $1,900