XRP Leverage at 0.1 as Price Holds $1.40
CryptoQuant analyst Pelinay says XRP's low leverage environment combined with stable price action suggests excess speculation has already been flushed out, setting up a potential squeeze.
Key Takeaway
Low leverage with stable price suggests speculation is flushed — a reversal could spark a squeeze.
XRP's estimated leverage ratio on Binance has dropped to 0.1 even as the token holds steady at $1.40.
CryptoQuant analyst Pelinay said the low leverage combined with sideways price action creates a divergence that rarely stays unresolved. XRP's price has not collapsed alongside the leverage drop, which indicates excess speculation has already been flushed out. Back in October 2024, the same 0.1 leverage ratio corresponded with a $0.50 price.
The market typically resolves this type of divergence in one of two ways. Price can fall to match the lower leverage environment, or leverage can begin rising again and feed a stronger price reaction. The second outcome is the more bullish scenario, according to the source analysis.
Crypto analyst Egrag Crypto arrived at a similar conclusion using a monthly candlestick chart. He identified XRP compressed in a wedge structure with a possible trap zone marked around the $0.90 region. The bullish path target sits above $1.80.
Leverage ratios can shift fast. From late June to mid-July 2025, XRP's leverage ratio climbed from below 0.3 to just under 0.6 in four weeks. During that same period, XRP surged from $1.96 to $3.65. Late 2024 saw a major price expansion phase with higher leverage, followed by a push to new all-time price highs in mid-2025, tracked by CryptoQuant's analytics platform on Binance.
This article was written based on reporting from NewsBTC.
