XRP Leverage Hits Seven-Month High as Traders Pile Into Long Positions

XRP’s estimated leverage ratio on Binance has climbed to its highest level since January, reaching about 0.21, following the token’s sharp 44% rally over the past week. Data shows traders overwhelmingly favoring long positions, with roughly two long bets for every short on Binance and an even higher ratio among top traders and on OKX.

Futures Trading Far Outpaces Spot Market

XRP futures generated about $6.4 billion in trading volume over 24 hours, more than five times the volume seen in spot markets. Open interest in XRP futures currently stands at around $3.45 billion, reflecting a significant buildup of leveraged positions during the token’s strongest rally in months.

Rising Leverage Raises Risk of Sharp Pullbacks

The surge in leveraged long positions comes as XRP pulled back nearly 5% to $1.44 after trading above $1.50 earlier in the week. With such heavy long positioning, analysts warn that a deeper price drop could trigger forced liquidations, potentially amplifying any downward movement.