Coinbase Markets has flagged rising risk in XRP long positions after data from Glassnode, a blockchain analytics firm, showed that 97% of the token's net-long derivatives exposure was entered at prices above the $1.31 snapshot level. The largest concentration of bullish derivatives exposure carries an average entry price of roughly $1.40.

XRP changed hands near $1.34 on October 16 — above the snapshot price used in the analysis but below the main entry cluster, leaving the main cluster of long entries showing unrealized losses on paper at that price. The figures describe open exposure at recorded entry levels rather than the holdings of every XRP holder.

Entry-price concentration builds near $1.40

Glassnode groups outstanding long and short notional by entry price, subtracting short exposure from long exposure within each price band. Positive values indicate net-long positioning, while negative values indicate net-short positioning. Under that calculation, only a small portion of tracked net-long exposure sits at or below $1.31.

The finding does not indicate how many traders are holding losses, because a single market participant can hold multiple contracts across different price bands. The chart also does not disclose the leverage or size attached to individual positions — variables that shape how sensitive any given trade is to margin rules.

Leveraged longs face margin pressure

The positioning data arrives in the wake of a broad market selloff. On October 15, crypto liquidation data showed $959.43 million in 24-hour forced closures across the market, including $879.71 million from long positions. Those totals cover multiple assets, not XRP alone.

Further declines could prompt leveraged XRP long position holders to add collateral or close their trades. Exchanges may also close positions that breach margin rules. Such exits can add to selling pressure, although the entry-price chart cannot forecast when — or whether — they will occur. Subsequent Glassnode positioning updates and daily liquidation tallies are the observable data points that can show whether that concentrated long base shifts.

Short positions cluster near $1.50

Glassnode also recorded net-short clusters near the $1.49 and $1.50 price levels, with the largest negative band topping $20 million in notional exposure. As with the long-side data, these figures track positions by entry price rather than future sell orders.

XRP was trading near $1.34 on October 16, following market swings driven by inflation data. Separately, analyst Ali Martinez wrote on X on October 15 that he was watching $1.25 as a possible buying area, per his X post. Martinez also outlined $1.42 and $1.60 as possible rebound levels; those are chart-based projections rather than confirmed targets. A price increase could ease losses on existing longs while eventually placing pressure on some short positions.

Entry prices differ from liquidation levels

An earlier XRP derivatives update recorded $17.97 million in XRP long liquidations against $1.22 million in short liquidations over 24 hours around October 13. However, an entry around $1.40 is not itself a liquidation threshold. Forced-closure levels vary with leverage, account margin, and available collateral, meaning traders with the same entry price can face liquidation at different points.

Coinbase's data alone cannot establish whether traders will sell, hold, or increase their exposure, and the entry-price distribution should not be read as a map of future orders.

This article is based on CoinCentral.