XRP Price Stagnant Amid Declining Leverage Ratios

The price of XRP has been under pressure as the futures market leverage continues to decline, mirroring conditions seen before the token's significant rally in 2024.

Crypto analyst Crypto Patel notes that Binance's Estimated Leverage Ratio (ELR) has dropped to its lowest levels since 2024, indicating a reduction in leveraged futures bets and open interest.

The current situation bears resemblance to the deleveraging phase in April 2026, where XRP corrected by nearly 70%, leading to a significant price movement later on. Patel emphasizes that while historical precedents do not guarantee future price changes, the removal of excessive leverage can lead to a healthier market structure.

XRP's technical structure remains weak, with lower highs and lower lows indicating a broader downward trend. Technical analysts identify the $1.19-$1.42 region as an important resistance zone, while the $0.74 support level is being monitored for potential revisits in case of increased selling pressure.