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According to CryptoQuant, the leverage ratio for XRP on Binance has risen to its highest level since early 2026.
Binance's Estimated Leverage Ratio data provided by CryptoQuant indicates that leverage utilized by traders has increased, even as XRP price jumps.
XRP price increased for three straight days, reaching an intraday high of $1.292 on Monday. While XRP price rose, traders expanded their leverage, which reached highs seen since the start of 2026.
XRP's leverage ratio rose to about 0.1899, CryptoQuant noted, which is its highest level since the beginning of 2026. This suggests a clear increase in market participants' dependence on leveraged positions.
Before this time, XRP's leverage ratio ranged between 0.15 and 0.18 over the last few months, making several attempts to break out before recently surpassing this range and reaching a 2026 high. This suggests increased activity in XRP's derivatives market even as sentiment picks up amid the recent XRP price increase.
Implications
CryptoQuant notes that from a market perspective, the fact that the XRP leverage ratio is at its highest level since early 2026 can be seen as a sign that traders are becoming increasingly confident that the short-term upward trend might continue.
However, when the leverage ratio is high, the market can be more sensitive to volatility, with a sudden price movement triggering a wave of position liquidations among both bullish and bearish traders.
Therefore, this indicator's trend remains a key aspect to follow in the coming sessions to assess the inherent risk level in the XRP market. Additionally, the continued increase in the estimated leverage ratio suggests a rise in trader activity in the derivatives market compared to the spot market.
The Binance XRP Open Interest Z-Score (30D Rolling) indicator also highlights an increase in XRP derivatives market activity. In light of this, the 30-day MA (open interest) rose to 484.8 million XRP, a four-month high. This suggests that liquidity and activity might be gradually returning to the futures market.
U.Today Editorial Team
Dan Burgin
