XRP's Leverage Ratio Hits Historic Lows as Volatility Spike Looms

The cryptocurrency market has witnessed a significant shift in the trading dynamics of XRP, with its leverage ratio plummeting to historic lows on major exchanges. According to CryptoQuant data, XRP's estimated leverage ratio on Binance has dropped to 0.13-0.15, representing a 78% decline from its mid-2025 peak.

This sharp decrease in leverage is largely attributed to the derivatives reset that followed the 2025 bull run. The collapse of open interest to $375M and reduced overleveraged positions have contributed to this significant drop. Meanwhile, genuine spot demand has prevented a deeper price collapse, with large exchange outflows indicating coins moving into self-custody and long-term holding.

As XRP's leverage ratio continues to hover around 0.13-0.15, market analysts believe that the token is entering a phase where compressed derivatives positioning could amplify the next major move. With a current price of $1.40 and a 2.03% surge in the last 24 hours, XRP is showing short-term strength.

Coincodex data suggests that XRP is projected to reach $1.58 in three months and $1.69 in one year. A breakout above $1.45 resistance or a breakdown below key support may occur quickly once catalysts reappear, potentially triggering sharp volatility and a decisive directional price move.