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XRP Goes Mainstream in Japan with Rakuten Wallet Launch
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Calm Before A Major Move: XRP Leverage Flush Points To Possible Squeeze
TL;DR
XRP is currently trading between $1.38 and $1.40, with low leverage indicating potential for a significant price move. Historical data suggests that this calm period may precede a forceful explosive shift in XRP's price.
Key points
- XRP trading range is between $1.38 and $1.40
- Low leverage indicates potential for significant price movement
- Historical patterns suggest explosive price shifts may occur
Mentioned in this story
Binance
CryptoQuant
XRP is trading in a quiet range between $1.38 and $1.40, but new derivatives data indicates the calm may be masking a more unstable setup 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 the leverage, and this has created a divergence that history has shown to resolve through a forceful explosive move.
XRP Holds Strong Despite Sharp Decline In Leverage Ratio
The CryptoQuant chart shared by Pelinay focuses on Binance’s estimated leverage ratio for XRP. The most important signal that the chart is showing is not simply that leverage is low, but that XRP’s price has not collapsed alongside it.
The chart shows that leverage was much higher during previous phases, particularly around the major price expansion in late 2024 and the push to new all-time price 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 late 2024 numbers. Particularly, the Estimated Leverage Ratio on Binance is now around 0.1. The XRP’s price, however, is still holding close to $1.4, which is well above its price levels seen before its late-2024 breakout. Back in October 2024, a leverage ratio of 0.1 corresponded with an XRP price of just $0.50.
XRP Estimated Leverage Ratio On Binance. Source: CryptoQuant
Is A Squeeze Coming For XRP?
What this means in essence is that the XRP price is no longer being pushed mainly by aggressive borrowed positioning. That can be important because it suggests that much of the excess speculation has already been flushed out.
Q&A
What does low leverage mean for XRP's price movement?
Low leverage indicates that there is less borrowing against XRP, which can lead to a more stable price but may also signal an impending significant price move.
How has XRP's leverage ratio changed over time?
XRP's leverage ratio has decreased significantly from higher levels seen during major price expansions in late 2024 and mid-2025, currently resting near the lower end of its range.
What historical patterns suggest a price explosion for XRP?
Historical data shows that periods of low leverage and sideways price action for XRP often resolve in a forceful explosive move, indicating potential volatility ahead.
