XRP’s estimated leverage ratio on Binance has sharply fallen, reaching levels last seen in early 2024, after a substantial increase during the 2025 bull run. The recent shift was highlighted by cryptocurrency analyst Xaif, who cited CryptoQuant data tracking the change in market positioning over the past two years.
Leverage surge and dramatic reversal
CryptoQuant, a blockchain data analytics firm, monitors a range of key on-chain indicators, including exchange leverage ratios. According to its platform, XRP’s estimated leverage ratio on Binance was stable between 0.05 and 0.15 from mid-2024, reflecting a period of relatively subdued risk taking among traders.
However, as the market gained momentum into late 2024 and the first part of 2025, the leverage ratio climbed significantly, tracking a steep rally in XRP’s price. At the peak of this movement, the leverage ratio surged by 790%, hitting approximately 0.40—the highest level since tracking began—while XRP price exceeded $3.
Leverage on Binance for $XRP just quietly deflated to levels not seen since early 2024, after rising 790% during the 2025 surge.
The ratio’s rapid ascent ended as the market reversed, with leverage steadily declining and the indicator returning to the lower end of its historical range.
Chart signals market reset
The CryptoQuant chart overlays XRP’s price with a 30-day exponential moving average (EMA) of the estimated leverage ratio. Throughout 2025’s bull market, both metrics moved higher together, but as XRP began an extended decline, the leverage ratio followed suit. As of now, the leverage ratio sits at approximately 0.15, just above a noted support zone that coincided with market turning points in prior months. Meanwhile, XRP’s price has settled near $1.10, after a prolonged fall from its 2025 highs.
Mini dictionary: Estimated leverage ratio is a metric that expresses the proportion of open interest (derivatives contracts) to reserves held on an exchange. A rising leverage ratio often signals increased risk taking and can lead to higher volatility if traders are forced to close positions.
| Period | Estimated leverage ratio | XRP price |
|---|---|---|
| Mid-2024 | 0.05–0.15 | Sub-$1.50 |
| Peak early 2025 | ~0.40 | Above $3 |
| July 2026 | ~0.15 | ~$1.10 |
Analyst sees potential for market shift
Xaif, known for closely monitoring derivatives signals on major crypto exchanges, views this sharp drop in leverage as a sign that speculative traders have exited aggressive positions and that the market has undergone a substantial reset. He characterized the latest move as a “cleanup phase,” suggesting that the worst of the forced liquidations may be over.
Xaif points to the cleanup of excess leverage as a setup for further movement: “The froth is gone. Weak hands flushed out. This is usually when the real move starts.”
This pattern is familiar in cryptocurrency derivatives trading. As traders pile into leveraged positions during a rally, any price reversal can trigger liquidations, forcing leverage ratios to drop quickly. Market analysts often interpret this dynamic as a return to stronger, more stable hands, following a correction.
XRP positioned above key support
While Xaif does not suggest a specific price target for XRP, he maintains that the leverage ratio’s reset to early 2024 levels is a significant signal. The chart’s support band has acted as a historical floor, with price and leverage now aligned near this area. Market watchers will be monitoring if XRP can sustain this base, as major shifts in leverage have previously signaled the start of new accumulation phases or directional moves.
No immediate reversal is guaranteed, but current data indicates a clean slate, with less excess leverage and a more balanced market structure. XRP remains above a major support level with the leverage ratio’s 30-day EMA flattening out, which in past cycles has preceded new trends in price action.
