XRP Leverage Cleanup Sparks Comparisons to 790% Rally

The XRP market is undergoing significant changes as CryptoQuant reports a substantial decrease in leveraged positions. According to data, the estimated leverage ratio (ELR) on Binance has fallen to 0.16, one of the lowest levels since November 2024 and approaching the low of 0.15 seen in April 2026.

This decline is attributed to a decrease in futures positions, which led to a reduction in open interest and total leverage level in the market. The CryptoQuant analysts argue that this leverage cleanup is crucial for the ongoing correction process, as excessive leverage can make price movements more fragile and unpredictable.

A similar process occurred in 2024 when XRP was trading sideways around $0.40 with an ELR of 0.05. After the clearance of leveraged positions, the XRP price rose by over 790%, and the ELR level increased again as leverage re-entered the market during the price rally.

While analysts do not guarantee a new surge of the same magnitude in XRP, they emphasize that following the delegitimization cycle is essential for investors to evaluate market conditions and potential positioning opportunities.