XRP Jumps 44% as Rising Leverage Leaves Rally Vulnerable to a Pullback

XRP’s sharp 44% weekly advance has triggered a renewed wave of leverage in its derivatives market, increasing the potential for a deeper correction as the token begins to retreat.

CryptoQuant data show XRP’s estimated leverage ratio on Binance has risen to about 0.21, its highest level since January. The metric compares derivatives open interest with XRP reserves held on the exchange, with higher readings indicating that leveraged exposure is increasing relative to available tokens.

Long positioning is also dominating the market. CoinGlass data showed roughly two Binance accounts held long positions for every short position on Wednesday. Among the platform’s top traders, the ratio was closer to three longs for each short. On OKX, traders held approximately two long positions for every short.

Trading activity in XRP futures has also far exceeded spot-market volume. Futures recorded about $6.4 billion in turnover over the previous 24 hours, more than five times the roughly $1.2 billion traded in spot markets. Open interest in XRP futures stood near $3.45 billion.

XRP Leverage Climbs Alongside Rally

The buildup in leverage came during XRP’s strongest rally in several months. The broader crypto market accelerated after the U.S. Treasury expanded its bond-buyback program last week, contributing to a decline in longer-term yields. Bitcoin subsequently climbed from below $68,000 to nearly $80,000, while XRP outperformed BTC and many other major cryptocurrencies.

XRP also benefited from several token-specific developments. Ripple recently supported a new institutional credit fund that plans to issue loans denominated in its RLUSD stablecoin through the XRP Ledger.

Separately, ledger activity data indicated that an increasing portion of XRP transactions is occurring during the overlap between London and New York trading hours.

Despite the strong weekly advance, XRP fell nearly 5% over 24 hours on Wednesday to around $1.44 after briefly trading above $1.50.

Higher Leverage Raises Liquidation Risk

With XRP’s estimated leverage ratio at a seven-month high and roughly $3.45 billion in open positions heavily skewed toward longs, further price declines could trigger forced liquidations.

When leveraged positions fall below required collateral levels, exchanges can automatically close them. Those forced sales can add further downward pressure, potentially turning a routine pullback into a much sharper decline if liquidations occur simultaneously.

XRP maintained relatively low leverage levels for much of 2026. The last time its estimated leverage ratio reached comparable levels was in January, when the token was trading above $2.

The current combination of elevated leverage, heavy long positioning and a recent 44% rally leaves XRP more exposed to volatility if traders begin unwinding crowded bullish bets.