XRP’s next rally could put this 115 million-token short under pressure

Leveraged funds more than doubled their CME XRP net short as open interest surged nearly 40% in one week.Last week, the Commodity Futures Trading Commission (CFTC) reported that XRP open interest increased by 2,206 from a week earlier, to 7,783 futures-equivalent contracts. At 50,000 XRP per standard contract, the increase represented about 110.3 million tokens and lifted total exposure to roughly 389.2 million XRP.The expansion came during a sharp recovery in the token. CryptoSlate previously reported that the digital asset had rebounded about 32% from $1 this month, trading near $1.38 as of press time.Leveraged funds moved against that momentum, holding 892 long contracts and 3,206 shorts. Their net short widened to 2,314 contracts, equivalent to about 115.7 million XRP, from 57.35 million XRP a week earlier.The increase added 58.35 million XRP-equivalent of net short exposure and left leveraged funds with the largest directional short among the reportable CFTC categories.Dealers and asset managers moved the other way.Dealers increased their net-long position by 1,195 contracts, equivalent to 59.75 million XRP, ending at 2,121 contracts net long. Asset managers added 565 net cont...