XRP (XRP) derivatives markets have undergone a full speculative flush that pushed the Estimated Leverage Ratio down to 0.16 on Binance, eliminating the kind of overcrowded positioning that typically fuels flash crashes — but also removing the overleveraged long bets that could have powered a sharp rebound.
What Happened: Leverage Ratio Hits Floor
The Estimated Leverage Ratio, a metric that tracks speculative positioning in futures markets, has declined sharply after a previous spike and now sits near 0.16, according to analysis from a CryptoQuant contributor.
Both the 30-day and 50-day simple moving averages of the indicator are trending downward, pointing to a sustained reduction in leveraged exposure rather than a temporary pause.
Binance is central to this picture because it remains the dominant liquidity hub for XRP derivatives trading in terms of both volume and open interest.
Shifts in leverage on the exchange tend to reflect global risk appetite in real time rather than isolated activity, and significant moves there can trigger broader liquidation chains across the market.
XRP was trading near $1.33 at the time of the report, well below the 50-, 100-, and 200-period moving averages — all of which are sloping downward. The $1.20–$1.30 zone represents the nearest support cluster, while a sustained move back above roughly $1.60 would be needed to neutralize the current bearish structure.
Why It Matters: Stability Without Direction
The 0.16 leverage floor confirms that speculative traders have been largely flushed out during recent volatility, reducing the likelihood of cascading forced liquidations. That makes conditions comparatively calmer, but it cuts both ways.
Low leverage environments tend to create a more stable foundation for institutional participation, as large players generally prefer entering markets with reduced volatility and balanced positioning. Still, without a clear pickup in spot demand, XRP may continue drifting in a controlled, slightly downward range as the market resets expectations.