XRP's use Plunge: A Set-Up for a Big Move?

Here's the thing: XRP is back in the spotlight, trading above $1.40 after some favorable news, like its Middle East expansion and a fresh partnership with OKX. But what's lurking beneath the surface could be more telling. The derivatives data hints at a market that might be more explosive than it appears. The tap into ratio on Binance has plummeted to a low 0.1, a level we last saw in late October 2024 when XRP was barely $0.50. Despite the price tripling since then, this divergence suggests potential for a significant move.

Now, don't ignore this: In the past, similar setups led to major shifts. Between late June and mid-July 2025, XRP surged from $1.96 to $3.65 as tap into climbed back up. Currently, with volume tamped down and XRP consolidating, the market's building pressure. If tap into picks up again, it's not far-fetched to think that XRP could challenge the $2.00 psychological figure and perhaps even aim for previous highs around $3.65. However, if the price adjusts to the low tap into, we might see a dip back to the $1.00, $1.10 range.

For crypto traders, this scenario is a double-edged sword. While the potential for a short squeeze is there, the current environment means short exposure is risky and could get ugly fast. If tap into rebuilds, the move could be swift and severe, catching short sellers off guard. In a market that's leaning towards disinflation and increased liquidity conditions, this isn't just about XRP. It's a cross-asset story with ripple effects, pun intended, across the broader crypto mosaic.