XRP’s 44% weekly rally has brought leverage back into the derivatives market, with Binance’s estimated leverage ratio reaching its highest level since January.
XRP$1.43-4.07%XRP’s latest rally has delivered some of its strongest gains in months, but the surge has also brought a familiar risk back into the market, leverage.
XRP gained roughly 44% over the past week, pushing above $1.50 before pulling back to around $1.44. At the same time, derivatives positioning has increased sharply, with traders becoming increasingly bullish as XRP’s price accelerates higher.
According to CryptoQuant data, XRP’s estimated leverage ratio on Binance has climbed to around 0.21, its highest level since January. The reading suggests that leveraged exposure is rising relative to the amount of XRP held on the exchange.
The latest move follows XRP’s sharp recovery toward $1.55, although that rally has already begun showing signs of exhaustion, as discussed in “XRP Rally Stalls at $1.55: Key Support and Resistance Levels to Watch”
The increase in leverage comes as traders pile into XRP futures.
CoinGlass data showed roughly two long accounts for every short account on Binance on Wednesday. Among top traders, the ratio was closer to three-to-one, while OKX accounts had roughly two longs for every short.
The derivatives market is also significantly larger than spot trading right now.
XRP futures generated approximately $6.4 billion in volume over the previous 24 hours, compared with around $1.2 billion in spot volume. Futures open interest stood near $3.45 billion, highlighting how much capital is currently positioned through derivatives.
That imbalance matters because heavily leveraged long positioning can amplify a pullback.
The leverage buildup followed XRP’s strongest stretch in months.
A broader crypto market rally helped push Bitcoin from below $68,000 toward $80,000 after the US Treasury expanded its bond-buyback program, while XRP outperformed Bitcoin and several other major cryptocurrencies during the move.
XRP also benefited from its own ecosystem developments. Ripple recently backed an institutional credit fund that plans to provide loans in its RLUSD stablecoin through the XRP Ledger.
However, the momentum has started to cool.
XRP fell almost 5% over 24 hours to $1.44 on Wednesday after trading above $1.50 earlier in the session. The pullback comes as leverage reaches levels not seen since January.
Related: Goldman Sachs Discloses $86.5M XRP ETF Exposure as Trading Volumes Surge
The biggest concern is what happens if XRP continues falling while traders remain heavily positioned long.
When leveraged positions move against traders, exchanges can liquidate positions once available collateral becomes insufficient. Those forced closures can create additional selling pressure, potentially turning a normal correction into a sharper decline.
This makes the current XRP setup particularly important.
The token spent much of 2026 with its estimated leverage ratio at relatively low levels. The last time the indicator reached comparable territory was in January, when XRP was trading above $2.
That does not mean XRP must repeat January’s price action. It does, however, show that leverage has returned alongside the latest XRP rally, creating another source of downside risk if bullish momentum fades.
For now, traders are watching whether XRP can stabilize after its rejection above $1.50 or whether crowded long positions begin to unwind.
Bitcoin holds near $79,000 after gaining 23% in a week while XRP, Zcash, Solana and Ether pull back as traders lock in profits.
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Solana briefly touched $102 for the first time since February as the broader crypto market rallied. Here are three key factors driving SOL’s latest recovery and the levels traders are watching next.
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Bitcoin crypto-margined open interest has fallen to about 12%, highlighting a major shift toward stablecoin collateral as leveraged traders continue driving market volatility.
BTCBinance XRP Leverage Ratio Hits Highest Level Over 7 Months “If it coincides with a price increase and rising open interest, it could reflect increased confidence and the opening of new positions, potentially supporting the continuation of the upward trend.” – By @ArabxChain
