"Was it really on the verge of exploding?"...XRP, collapses to 'all-time low leverage'

▲ XRP/ChatGPT generated image

The leverage indicator in the XRP market has fallen to an all-time low. However, the price has maintained a certain level, leading to an analysis that the market has entered an extreme state of balance before determining its direction.

Cryptocurrency specialized media The Crypto Basic reported on May 2 (local time) that XRP's estimated leverage ratio based on Binance had fallen to a level of 0.1, reaching a historical low.

Pelinay, a CryptoQuant contributor, analyzed the current situation, stating, "Spot demand, not speculative futures trading, is supporting the price." Indeed, XRP is showing a different structure from the past, maintaining a support level of approximately $1.3 while only its leverage ratio has sharply decreased.

Compared to past cases, the anomaly of the current situation is even more pronounced. In October 2024, when the leverage ratio was also at 0.1, the XRP price was only about $0.5, but currently, it maintains a much higher price range even in the same leverage environment.

This discrepancy is interpreted as a signal of market imbalance. Pelinay explained, "When the gap between leverage and price widens, the market tends to move sharply in one direction to regain equilibrium."

Similar patterns have indeed appeared in the past. From late June to mid-July 2025, while the leverage ratio rose from 0.3 to 0.6, the XRP price surged from $1.96 to $3.66, and then plummeted during the leverage unwinding process.

The current market is assessed to have entered a 'static phase' with almost no leverage inflow. In this phase, two scenarios are simultaneously open: either the price falls to match the leverage level, or conversely, leverage re-enters, triggering a price increase.

Pelinay emphasized that particularly if an uptrend begins when leverage is already low, new leverage funds can rapidly flow in, triggering a sharp increase. The diagnosis is that while the market appears quiet, it is actually in a compressed phase anticipating significant volatility.

*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.*