XRP (CRYPTO: XRP) is down 4% on the day, despite Binance leverage ratios plunging 78% from 0.59 in mid-July 2025 to just 0.13 now as speculative positions flush out and the derivatives market resets.

The Leverage Unwind

Binance’s Estimated Leverage Ratio for XRP has collapsed from around 0.59 in mid-July to 0.13, indicating that most highly leveraged positions have been flushed out. 

Analysts calculate this ratio by dividing an exchange’s open interest by its coin reserves to measure average leverage used.

At the same time, XRP’s open interest on Binance stands at only $375 million, significantly lower than peaks recorded over the past year. 

“The main takeaway is that speculative pressure has eased significantly,” explained Amr Taha, an analyst at CryptoQuant. 

“Binance’s XRP derivatives market now looks much less overheated, potentially creating a cleaner setup for its next major move,” he added.

The Liquidation Risk Has Dropped

In theory, this deleveraging is a positive signal. When speculative positions decline and leverage drops, the market becomes less crowded and less exposed to cascading liquidations. 

The market structure is becoming more stable, reducing the risk of violent swings driven by forced selling.

However, the price action hasn’t reflected this improved structure yet. XRP continues trading in a sustained downtrend, making lower highs consistently since peaking above $3 in mid-October.

On-Chain Activity Surges

Despite the bearish price action, data from Artemis Analytics shows that total weekly transactions on the XRP Ledger have surged to 19 million—the highest level observed since the beginning of 2025. 

The spike in transaction activity may stem from recent Ripple developments that have attracted investor attention.

XRP Tests Critical Support

XRP is hugging the daily lower Bollinger Band at $1.3130, which typically signals oversold conditions. 

The bands have started widening again after a brief squeeze in mid-March, suggesting volatility is picking up with a downside skew.

On the 4-hour chart, all four EMAs cluster in the $1.40-$1.44 zone and now act as overhead resistance. 

Price broke below the key support-resistance channel between $1.40 and $1.47, turning former support into resistance. 

The $1.30-$1.35 zone is the next area where buyers have historically stepped in.

Additionally, the supertrend indicator flipped bearish at $1.5841 and price trades well below it, confirming sellers remain in control. 

Key Levels for XRP

On the downside, $1.35 is the immediate line in the sand. A daily close below this opens the door toward $1.30 and potentially $1.20, which was the February low.

On the upside, bulls need to reclaim $1.40 convincingly—where the EMA cluster and broken support zone converge. 

Until that happens, rallies are likely to be sold into rather than signal trend reversals.

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