XRP Dives into Deleveraging Zone Ahead of Possible Rally

XRP is experiencing another deleveraging phase on Binance, according to CryptoQuant author Darkfost. A key derivatives metric has dropped to one of its lowest levels since late 2024.

The Estimated Leverage Ratio (ELR) on Binance has fallen to 0.16, close to its April 2026 low of 0.15. This is a significant reduction from the previous peak during XRP's rally.

This deleveraging phase is considered a healthy sign as excessive leverage can make markets more fragile and increase the risk of sharp price swings. A similar setup occurred in mid-2024, when XRP traded near $0.40, with Binance's ELR dropping to around 0.05.

After that leverage reset, XRP rallied over 790% to over $3.60, with leverage gradually returning alongside rising prices. If a similar rally were to repeat itself now, it could put the token's price at approximately $9.80.