Leverage disappeared, but no buying either…XRP danger signal

▲ XRP/ChatGPT generated image ©

XRP (Ripple) has been realigned into a ‘clean structure’ after leverage liquidation, but its direction remains uncertain due to a lack of actual buying demand.

According to the cryptocurrency media outlet Bitcoinist on May 2 (local time), a large-scale deleveraging occurred in the XRP derivatives market after the Federal Reserve's (Fed) interest rate freeze on April 29, rapidly reshaping the market structure. At the time, interest rates were maintained at 3.50-3.75%, and overall market tension persisted as Jerome Powell stated he would remain on the board after his term as chairman ended.

According to CryptoQuant data, Binance XRP open interest decreased to approximately $208 million, returning to February 2026 levels. This means that most of the leverage positions accumulated since February were liquidated in a short period. In particular, long position liquidations were concentrated from April 17 until the end of the month, introducing additional selling pressure into the market.

The problem is that actual demand has also weakened along with the reduction in leverage. The cumulative spot trading volume index on centralized exchanges decreased to approximately $920 million, and net selling pressure expanded in the Binance perpetual futures market. The media analyzed that while the removal of leverage cleared the market, new buying interest to replace it has not yet been confirmed.

The price movement is also limited. XRP is currently trading sideways, maintaining a narrow range around $1.37, and has formed a gentle ascending low structure since the sharp decline in February. However, it is trading below the 50-day, 100-day, and 200-day moving averages, indicating that a bearish structure is still maintained in the mid-term.

The key turning point is the $1.35 range. This price level acts as both a support and equilibrium zone, and the recent confirmation of resistance near $1.45 clearly indicates overhead supply pressure. The decrease in trading volume also shows reduced market participation, suggesting the possibility of increased volatility in the future.

The outlet analyzed that if XRP breaks above $1.45, there is room for it to rise to $1.60, but if the $1.33-$1.35 support level breaks, it could fall to $1.25. Ultimately, the current market is in a phase where it needs to establish a new direction after the removal of leverage, and the recovery of spot demand is identified as the key variable determining the next trend.

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