XRP is trade in a calm range between $1.38 and $1.40, but new derivatives data indicates the calm may be masking a more volatile pattern beneath the surface.
A CryptoQuant analysis by Pelinay shows that XRP’s leverage structure is low and moving sideways, while its price action has been relatively higher than leverage, creating a divergence that history has shown can be resolved through a powerful explosive movement.
Related reading
XRP remains strong despite a sharp drop in leverage ratio
The CryptoQuant chart shared by Pelinay focuses on Binance Estimated Leverage Ratio for XRP. The most important signal shown by the chart is not simply that leverage is low, but that the price of XRP did not collapse at the same time.
The chart shows that leverage was much higher in earlier phases, particularly around the major price expansion in late 2024 and the push to new all-time highs in mid-2025. However, the current leverage ratio has fallen back near the lower end of its range and is moving sideways.
THE leverage is now back to figures at the end of 2024. In particular, the estimated leverage ratio on Binance is now around 0.1. The price of XRP, however, remains near $1.4, which is well above the price levels seen before its breakout in late 2024. As of October 2024, a leverage ratio of 0.1 corresponded to an
Estimated leverage ratio XRP on Binance. Source: CryptoQuant
Is a Squeeze Coming for XRP?
This essentially means that the price of XRP is is no longer pushed mainly through aggressive borrowing positioning. This may be important because it suggests that much of the excessive speculation has already been eliminated.
However, this type of discrepancy rarely remains unresolved for long. The market generally responds to this in two ways. Price can fall to match the leverage environment is lower, or leverage may start to rise again and fuel a stronger price reaction.
The second result is the most bullish scenario. In this case, XRP would not need an already overheated derivatives market to begin its action. A similar development occurred between late June and mid-July 2025, when the leverage ratio increased from less than 0.3 to just under 0.6 in four weeks, and during the same period, XRP rose from $1.96 to $3.65.
Related reading
Crypto Analyst Egra Crypto arrived at a similar result conclusion through an entirely different framework using the monthly candlestick chart. Both analyzes point to the same idea: XRP may appear calm, but the structure is preparing for a violent move.
XRP Price Chart. Source: @egragcrypto
The chart shows XRP compressed between long-term ascending macro lines, with the price now located around the bottom of a wedge structure. EGRAG marked the $0.90 region as a possible trap zone, while also showing a bullish trajectory that could send XRP back above $1.80.
Featured image from Unsplash, chart from TradingView
