Key facts
- XRP reached an intraday high of $1.60 on September 22.
- Trading volume for XRP was near $7.4 billion on September 22.
- Leveraged funds on CME reduced their net short XRP position by 46.3 million XRP in the week ended September 15.
- Coinbase leveraged funds remained net short approximately 141.6 million XRP across all products.
- Spot XRP ETFs have seen over $1.7 billion in cumulative net inflows.
- XRP whale inflows to Binance hit 1.6 billion tokens over 30 days.
XRP reached an intraday high of $1.60 on September 22, accompanied by trading volume near $7.4 billion, suggesting a potential short squeeze. However, data from the Commodity Futures Trading Commission (CFTC) for the week ending September 15 reveals a more nuanced picture in regulated futures markets.
On CME's XRP futures contract, leveraged funds reduced their net short position by 46.3 million XRP, moving from 82.25 million XRP net short on September 8 to 35.95 million XRP on September 15. This reduction was primarily due to covering shorts, with some new long positions added. Despite this deleveraging, CME open interest fell by approximately 25.45 million XRP, indicating a decrease in overall risk rather than a clear rotation into new longs.
This institutional shift on CME occurred after it surpassed Binance as the largest XRP futures venue by open interest in early September. The high derivatives volume and venue split contribute to volatility. In contrast, Coinbase's standard XRP futures book saw a slight improvement, with a 3.65 million XRP decrease in net short exposure. However, its perpetual-style product added short exposure by 1.29 million XRP. Across all Coinbase products, leveraged funds remained net short roughly 141.6 million XRP.
Previous price jumps have also been accompanied by high futures volume relative to spot volume. Spot XRP ETFs have attracted over $1.7 billion in cumulative net inflows, providing institutional support. However, sell-side inventory is building, with XRP whale inflows to Binance reaching 1.6 billion tokens over 30 days, the highest since March. A regulatory dispute between CME and the CFTC over new futures products adds further complexity to the landscape of US-regulated XRP futures venues.
Analysts had previously identified the $1.60 level as a key supply shelf. While the high-volume print through this level is notable, supply zones are typically tested multiple times. The next CFTC print, covering the week of the $1.60 spike, is expected around September 25 and will provide insight into whether CME covering continued and if Coinbase shorts began to compress.