XRP is there trading in a serene range between $1.38 and $1.40, but fresh derivatives data suggests the peaceful may be masking a more volatile setup beneath the surface.

CryptoQuant analysis by Pelinay shows that XRP’s leverage structure is low and moves sideways while its price action has been relatively higher than leverage, resulting in a divergence that, as history has shown, was resolved by mighty, explosive movement.

XRP remains high despite a piercing decline in leverage ratio

CryptoQuant Chart provided by Pelinay focuses on Estimated Binance Leverage Ratio for XRP. The most critical signal shown on the chart is not simply low leverage, but the fact that the price of XRP did not fall with it.

The chart shows that leverage has been much higher in previous phases, especially as prices expanded significantly in delayed 2024 and reached fresh historical highs in prices in mid-2025. However, the current leverage ratio has fallen near the lower end of the range and is moving sideways.

The leverage returned to data as of delayed 2024. Specifically, the estimated leverage ratio on Binance is currently around 0.1. However, the price of XRP is still trading near $1.40, well above the price level seen before the delayed 2024 breakout. In October 2024, a leverage ratio of 0.1 corresponded to an XRP price of just $0.50.

Estimated XRP leverage ratio on Binance. Source: CryptoQuant

Is an XRP squeeze coming?

This basically means that the price of XRP is he is no longer pushed mainly through aggressive lending positioning. This may be critical because it suggests that much of the excessive speculation has already been washed away.

However, these types of discrepancies rarely remain unresolved for long. The market usually deals with this in one of two ways. Price may fit in a lower leverage environment or leverage may begin to boost again and trigger a stronger price reaction.

The second result is a more bullish scenario. In that case, XRP would no longer need an overheated derivatives market to start its move. A similar move occurred between delayed June and mid-July 2025, when the leverage ratio rose from under 0.3 to just under 0.6 in four weeks, and during the same period, XRP rose from $1.96 to $3.65.

Cryptocurrency analyst Egrag Crypto came to a similar conclusion conclusions in a completely different framework, using a monthly candlestick chart. Both analyzes point to the same idea: XRP may look peaceful, but the structure is preparing for a piercing move.

XRP price chart. Source: @egragcrypto

The chart shows XRP compressed between long-term rising macro lines, with the price currently trading around the bottom of the wedge structure. EGRAG pointed to the $0.90 region as a possible trap zone while showing a bullish path that could push XRP back above $1.80.

Featured image from Unsplash, chart from TradingView