XRP Liquidation Spikes Decline, Leaving Spot Demand as a Key Test

Sharp XRP liquidation spikes on Binance declined after recurring from late July through September, indicating easing pressure in that derivatives market while long liquidations remained higher than short liquidations in the latest readings.

Liquidations happen when leveraged positions are forcibly closed because traders do not meet margin requirements. Fewer liquidations indicate less forced activity in the measured market, but they do not show whether traders are buying XRP directly.

A sustained rise would need support from spot buying, trading volume and price trends. The Binance figures cover activity on that exchange and do not represent all XRP trading.

XRP’s network value to transactions ratio, or NVT, was reported at 36.97, down 69.28%. The ratio compares market capitalization with the value of on-chain transfers. A lower reading alone does not confirm that transaction activity increased.