XRP (XRP) derivatives data on Binance reveals a 78% collapse in the token's Estimated Leverage Ratio over eight months, dropping from 0.59 in mid-Jul. 2025 to 0.13 today — a structural reset that has stripped the speculative infrastructure from the market while price continues to slide below $1.40.
XRP Leverage Ratio Drop
A CryptoQuant analyst tracking Binance derivatives identified the deleveraging cycle as unusually severe.
The Estimated Leverage Ratio fell from 0.59 to 0.13, representing a near-complete unwind of speculative positions built during XRP's most aggressive trading period of the past cycle.
Open interest confirms the scale. Binance XRP open interest has dropped to roughly $375M — a fraction of the highs recorded in prior months, reflecting a market that has shed the bulk of its leveraged exposure.
The crowded trades that once defined XRP's most volatile sessions are gone, and with them, the forced-liquidation risk that amplified price swings in both directions.
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CryptoQuant Analyst View
The analyst's framing is deliberate: the simultaneous contraction in leverage ratio and open interest represents a broad structural reset, not a single metric drifting in isolation. Two indicators confirmed each other over the same period and in the same direction.
At 0.59, the derivatives market sat one sharp move away from cascading liquidations. At 0.13, that reflexive amplification mechanism has been largely dismantled. The market is lighter and far less exposed to the mechanical volatility that defined XRP's most chaotic sessions.
The forward implication is carefully stated — the market is not primed for a rally, but primed for a move driven by conviction rather than leverage.
XRP Price Structure
XRP traded at $1.3753, down 2.77% on the day. The session opened at $1.4145 and sold off consistently after briefly testing $1.4165 in the first hour.
The daily chart shows a continuous downtrend from a peak near $3.30 in late Sep. 2025, with no higher high over six months.
Every recovery attempt — near $1.90 in December, $2.40 in January, a bounce from $1.15 — was sold into, each lower than the last.
The 50-day moving average has crossed below the 100-day, confirming a death cross on the intermediate timeframe. The 200-day MA sits near $2.10 as the most significant overhead resistance. A daily close below $1.40 puts the Feb. capitulation low of $1.15 back in play.
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