Coinbase Markets: 97% of net longs on XRP are in loss

Coinbase Markets has turned its attention to the XRP derivatives market: a large number of bullish positions are at a loss, and XRP has yet to recover. According to the exchange, 97% of the net long exposure in XRP was opened at prices above the current market price of $1.31. The largest cluster of net long positions has an average entry price of around $1.40, meaning most of the remaining bullish positions are currently unprofitable.

Traders can either increase bullish bets in anticipation of a market recovery or close positions to avoid further losses. If XRP continues to decline, some traders, especially those using leverage, may be forced to exit positions. This could create additional selling pressure and a self-reinforcing cycle: the price drop forces traders to close, which in turn intensifies the decline. If XRP recovers, traders may maintain or even increase their positions.

The 97% figure does not mean that 97% of all XRP investors are at a loss: it refers to net exposure in the derivatives market, not to all token holders.

Glassnode's methodology is based on calculating the difference between long and short exposure at each entry price level. If the difference is positive, there are more long positions than short ones; if negative, the opposite is true. According to Glassnode, there is notable net short exposure around $1.49 and $1.50, with the largest such cluster exceeding $20 million in nominal terms. Thus, the market picture is unbalanced: many bullish positions are in a difficult situation. However, entry prices on the chart do not necessarily coincide with liquidation prices. Where exactly traders will be forced to exit positions depends on leverage, margin, collateral, and other factors.