"Big move soon"...XRP volatility expansion scenario

▲ XRP/AI generated image ©

XRP's (Ripple) leverage ratio has fallen to historically low levels, signaling that significant volatility is hidden behind a quiet market.

According to crypto media outlet Finbold on May 1 (local time), based on CryptoQuant data, XRP's estimated leverage ratio on Binance dropped to approximately 0.152. This is slightly higher than the 0.132-0.150 range recorded in late March and early April, but still corresponds to a low leverage environment similar to late 2024.

The outlet analyzed that a structure where prices are maintained despite reduced participation in leveraged positions generally precedes a strong directional movement. If funds flow back in when investors are observing without leverage, the upward momentum could expand, but conversely, if the market turns bearish, downward volatility could also increase.

In fact, XRP rose 1% in the last 24 hours, trading at $1.39, but showed relatively sluggish performance compared to Bitcoin (BTC), which rose 2.19% during the same period. The outlet interpreted this as a lagging reaction to Bitcoin's rise rather than XRP's own demand.

The market environment is also unfavorable for altcoins. The Altcoin Season Index dropped to 38, indicating a shift of funds towards Bitcoin, and XRP's trading volume also decreased by about 30%. The price is also trading below its 7-day simple moving average of $1.40, failing to secure clear upward momentum.

In the short term, XRP is likely to explore directionality between the $1.37 support level and the $1.40 resistance level. If $1.37 breaks, there is room for a decline to $1.28, and conversely, if $1.40 is recovered, an attempt to re-ascend is possible. Ultimately, the key variable identified is that the next volatility, in a low leverage environment, could be significant in either direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*