XRP Traders Get Ready – Leverage Has Just Hit a Historic Low

The XRP price is in a strange spot right now. On the surface, not much looks out of place, the price is holding above $1.35 and even showing small gains.  But under the surface, the futures data is telling a very different story. Leverage has dropped to historically low levels, and that usually doesn’t stay quiet for long.

However, the market in general does not provide any individualized guidance for XRP. The price of XRP increased by around 0.59%, reaching $1.38 over the past 24 hours, while this trend is mainly driven by the cryptocurrency market.

XRP News Today – Leverage Data and Market Setup

XRP price action is predominantly being influenced by movements in the overall crypto market space at the moment and not by events in XRP itself. Prices of Bitcoin and other cryptocurrencies have risen somewhat and the XRP price is merely tagging along with that movement.

As noted before, there does not appear to be any catalyst event driving the XRP price action. The reduction in trading volumes is also evidence of this as this usually indicates a lack of conviction regarding the price action in question.

Right now, the XRP price is largely range-bound. Buying interest is seen at levels around $1.33-$1.37 whereas selling resistance is evident at around $1.39-$1.45. It will only break out once either level gives way.

Leverage on XRP futures has dropped to extremely low levels, even though the price is holding relatively steady. That kind of disconnect doesn’t happen often, and it was recently indicated by CoinDesk. In simple terms, traders aren’t heavily leveraged right now. That usually means the market has been “reset” after previous liquidations, and positions are much lighter than before.

Source: X/@Coindesk

In past cycles, this type of setup has often come before stronger moves. When leverage is low, the market isn’t weighed down by crowded trades, so the price can move more freely once momentum returns. At the moment, XRP looks like it’s rebuilding from a clean slate. The key question is whether new leverage comes back in a controlled way or builds too quick again.

Read Also: Ripple Expands in Dubai as XRP Sentiment Hits 2-Year High After Rakuten Integration

What The XRP 4-Hour Chart is Showing

Looking at the 4-hour chart, the XRP price is still trying to recover but hasn’t broken out of its short-term structure yet. The price remains below the 100-period moving average around $1.4163, and that level is acting like a ceiling. Every bounce into that zone has struggled so far and volume is also relatively low, which makes the current bounce less convincing on its own.

Source: TradingView

There is one interesting detail though: momentum indicators are showing bullish divergence. That basically means price made lower lows, but momentum didn’t fall as hard. In previous cases, that has often led to short-term relief bounces. So the XRP price is caught between two forces right now: weak trend structure on one side, and early signs of recovery momentum on the other.

What Comes Next for the XRP Price

This is where things get important. Should buyers manage to break through the $1.4163 level with higher volumes, the immediate targets to consider are $1.45 and even $1.50 levels. This will confirm an uptrend within the recovery phase.

Should XRP fail once again and move below the $1.3770 level, the entire construction gets weaker, leading to a further drop towards $1.35 or below. The important thing to note here is that the leverage is low, indicating that a swift movement may follow.

The XRP price is in a quiet but tense setup. Low leverage, weak volume, and tight price compression are all lining up at the same time. Nothing has broken yet, but the market clearly looks ready for its next move. When it comes, it likely won’t be small.

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Funbi Afe
Funbi Afe

Funbi Afe is content strategist with a strong background in technical writing, cryptocurrency, journalism, and copy editing. Passionate about simplifying complex topics, Funbi crafts clear, engaging content that informs and inspires diverse audiences. With expertise spanning blockchain technology, SEO strategy, and market analysis, Funbi is dedicated to helping brands and communities deliver impactful, polished messaging in the fast-evolving digital space.

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