XRP Leverage Expansion Raises Risks Near $1.50 Resistance – A Big Move May Follow

Both motivations produce the same structural consequence. A derivatives market with leverage at its highest point in two months is a market that has reduced its tolerance for adverse price movements. The positions now open require the price to cooperate — or they become the source of the selling pressure that accelerates the decline they were betting against.

Arab Chain’s forward assessment is honest about the dual nature of the current setup. Rising leverage during a price recovery reflects genuine market confidence and the return of speculative interest that had been largely absent during the low-activity period of recent months. That confidence is constructive as long as the price continues to validate it.

The risk emerges at the point where the price stops cooperating. Liquidation waves triggered by leveraged positions unwinding do not arrive gradually — they arrive all at once, amplifying whatever move initiated them into something considerably larger.

XRP Holds Recovery Structure

XRP is trading around $1.46 after another failed attempt to reclaim the critical $1.50 resistance zone, a level that has consistently capped upside momentum throughout the recent recovery phase. The daily chart shows XRP maintaining a constructive short-term structure above the 100-day moving average, but price continues struggling beneath the broader resistance trend defined by the 200-day moving average near the $1.70 region.

XRP consolidates below the $1.50 mark | Source: XRPUSDT chart on TradingView

Following the sharp February selloff that briefly pushed XRP toward $1.10, buyers stepped in aggressively and stabilized the market above the $1.30-$1.35 support range. Since then, XRP has formed a gradual sequence of higher lows, signaling steady accumulation and improving sentiment despite the broader market uncertainty.

However, momentum remains fragile. The latest rally attempts toward $1.50 have lacked strong volume expansion, suggesting buyers are still unable to generate the conviction needed for a decisive breakout. At the same time, price compression beneath resistance is becoming increasingly tight, a condition that often precedes a larger directional move.

The rising leverage activity in derivatives markets adds another layer of risk to the setup. If XRP breaks above $1.50 with strong participation, momentum could accelerate quickly. Conversely, another rejection may trigger a sharp flush of leveraged positions back toward the $1.35 support zone.

Featured image from ChatGPT, chart from TradingView.com