XRP derivatives activity on the MEXC exchange expanded sharply as the token came under renewed selling pressure near the $1 level. Open interest on the platform climbed nearly 20%, while XRP briefly slipped below the psychologically important threshold before recovering, raising concerns about potential liquidations among leveraged traders.

Data across the broader derivatives market showed total XRP open interest rising 0.86% to $2.25 billion. Over the same period, XRP traded at $1.02, down 1.46% over the previous 24 hours.

XRP Liquidations Reach $18.83 Million in 24 Hours

Liquidations across XRP derivatives markets totaled $18.83 million over a 24-hour window, with long positions accounting for 94% of the total. A liquidation occurs when an exchange forcibly closes a leveraged position because the trader's margin can no longer cover losses, which makes liquidation totals a direct read on how much leveraged exposure was unwound during a given move. The imbalance indicates that traders betting on higher prices absorbed most of the forced closures as XRP struggled to hold its ground.

XRP briefly declined to $0.9961 before moving back above $1, renewing attention on a level that remains an important psychological and technical threshold for market participants. Liquidation data also showed a concentration of leveraged long positions below $1, meaning a renewed push lower could trigger additional forced closures.

The simultaneous rise in open interest and decline in price may indicate that traders are opening additional short positions. However, open interest measures outstanding derivatives contracts and does not independently reveal whether the new exposure is bullish or bearish.

XRP Funding Rates Indicate Modest Demand for Long Positions

Despite the increase in derivatives exposure, XRP perpetual futures funding rates remained slightly positive at 0.0080%. Funding rates are periodic payments exchanged between long and short holders of perpetual futures contracts, and positive readings — which occur when longs pay shorts — are widely used as a gauge of demand for leveraged long exposure. That reading was below the 0.01% baseline, suggesting relatively limited demand for leveraged long positions. Source: TradingView.

Spot market activity also reflected the selling pressure. XRP spot trading volume increased 46.7%, while sellers exceeded buyers by approximately $48.2 million.

U.S. spot XRP exchange-traded funds recorded zero net flows on November 12, indicating no net inflows or outflows through those investment products on that date. Net flows through spot crypto exchange-traded funds are widely tracked as a measure of demand for an asset through regulated fund products, making the flat reading a notable counterpart to the activity seen in derivatives markets.

XRP's $1 Level Remains a Key Market Threshold

The combination of rising derivatives exposure, heavier spot trading activity, and substantial long liquidations has kept attention on XRP's ability to maintain support around $1. A sustained move below that level could expose leveraged traders to further liquidations, particularly those holding long positions below the threshold. Conversely, stronger buying activity could help the cryptocurrency stabilize above $1.

The nearly 20% increase in MEXC open interest, compared with the 0.86% rise across exchanges, also points to a more concentrated build-up of derivatives activity on that platform. Whether this exposure reflects growing bearish bets or other trading strategies cannot be determined from open interest alone.

For now, XRP's performance around $1 remains a central factor for traders assessing market positioning, spot demand, and the risk of further liquidations. Funding rate readings, open interest levels, and ETF net-flow data are among the observable metrics market participants can track as price action continues to interact with the $1 threshold.

Originally reported by Hokanews. Market analysis by Marcus Renfield, crypto market analyst and on-chain writer.