XRP currently in a deleveraging cycle following intense derivative liquidations during January 5-7, sweeping both long and short positions across major exchanges. Price action remains trapped in the $2.20-$2.35 range with no decisive directional break materializing yet.

Derivatives markets are the primary driver of volatility here—the long-to-short ratio still tilts bullish at approximately 2.3:1, suggesting lingering buying pressure despite the recent liquidation cascade. However, this elevated ratio could also signal vulnerability to further correction if selling pressure intensifies.

The ongoing deleveraging suggests traders are reducing risk exposure, a typical pattern when market participants face uncertainty. Without a clear breakout catalyst, XRP appears stuck in consolidation mode, making it a wait-and-watch situation for swing traders and derivatives speculators.