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XRP leverage jumps as 44% rally draws traders into longs
XRP was about $1.44 after a nearly 5% drop on Wednesday, as leverage on Binance rose to roughly 0.21, lifting the odds of liquidation-driven downside if prices fall further.
XRP’s derivatives market has become more crowded with long positions after the token rallied 44% over the past week, raising the risk of a sharper pullback if prices slide further, according to CoinDesk, citing CryptoQuant and exchange data.
CryptoQuant data cited by CoinDesk show XRP’s estimated leverage ratio on Binance rose to about 0.21, the highest since January. The measure compares derivatives open interest with exchange reserves, and higher readings indicate more leveraged exposure building relative to XRP reserves.
CoinDesk also points to futures activity that dwarfed spot trading. XRP futures volume reached about $6.4 billion in 24 hours, more than five times the roughly $1.2 billion traded on spot, with futures open interest around $3.45 billion and traders heavily tilted toward longs.
As the leverage built, CoinDesk reports XRP fell nearly 5% to about $1.44 on Wednesday, after trading above $1.50 earlier. The outlet says this setup can increase the chance that further declines trigger forced liquidations and accelerate a drop.
Latest closeXRP $1.437 ▼2.8%