Coinbase Markets has warned about risks in the XRP derivatives market, with 97% of net-long exposure set at prices above the current XRP price of $1.31. The largest cluster of net-long exposure was set at an average entry price of around $1.40, meaning most bullish positions are currently underwater. This situation could trigger self-reinforcing selling pressure as leveraged traders are forced to liquidate their positions. Coinbase clarified that the 97% figure refers to net derivatives exposure and not the entire population of XRP holders.
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