XRP Estimated Leverage Ratio Seeing Same Pattern That Preceded the Late-2024 Surge
$XRP is showing deleveraging signs that resemble the conditions before its sharp rally in late 2024. Recent market data shows a decline in speculative trading, with Binances estimated leverage ratio (ELR) dropping to 0.16, one of its lowest readings since November 2024. For the uninitiated, the estimated leverage rating metric compares open interest with exchange reserves to show how much leverage traders are using. The current figure is also close to the April 2026 low of 0.15, which appeared during $XRPs earlier correction. Meanwhile, amid these conditions, $XRP has dropped about 70% from its 2025 high of $3.6 and now trades around $1.10. What Lower Leverage Means for $XRP The decline in the ELR mainly indicates a drop in leveraged futures positions, not necessarily changes in spot holdings. As the market corrected, many leveraged trades were closed, causing open interest to fall. Binances $XRP open interest now stands at about $375 million, below the highs seen over the past year. This sort of deleveraging often leaves the market in a healthier position. Notably, high leverage increases the risk of forced liquidations, where one liquidation triggers another and causes sharp price swings. However, when leverage falls, that risk becomes smaller. As a result, the market tends to become more