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CryptoQuant, a cryptocurrency analysis platform, reported a significant decrease in leveraged positions in the $XRP market, noting that the current outlook resembles the market structure that formed before the major price rally in 2024.
According to CryptoQuant analysts, $XRP is undergoing a new delegitimization process on Binance. This trend is being tracked through the estimated leverage ratio (ELR), which measures the ratio of leveraged positions in the futures market to the exchange’s $XRP reserves.
According to the data, $XRP’s ELR level on Binance has fallen to 0.16. This is one of the lowest levels recorded since November 2024 and is approaching the low of 0.15 seen in April 2026. This decline occurs during a period when $XRP’s price has corrected by approximately 70 percent from its peak.
The main reason for the decline in ELR was stated to be the decrease in futures positions. The liquidation of some leveraged positions during the price correction led to a decrease in the amount of open interest and a decline in the total leverage level in the market.
CryptoQuant argues that this leverage cleanup is important for the ongoing correction process. According to the analysis, excessive leverage accumulated in the market makes price movements more fragile and unpredictable, while clearing positions can help the market settle on a more stable footing.
A similar process occurred in the $XRP market in 2024. While $XRP was trading sideways around $0.40, the estimated leverage ratio (ELR) had fallen to 0.05. After the clearance of leveraged positions, the $XRP price rose by more than 790%, and the ELR level increased again as leverage re-entered the market during the price rally.
Analysts added that the current market structure does not guarantee a new surge of the same magnitude in $XRP. However, it was stated that following the delegitimization cycle is important for investors to evaluate market conditions and potential positioning opportunities.
*This is not investment advice.