“Leverage cleanup in XRP is complete; conditions are similar to the period when it increased 8 times”

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 sharp price rise in 2024.

According to CryptoQuant analysts, $XRP is subject to a new delegitimization process on Binance. This trend is tracked by the estimated leverage ratio (ELR), which measures the ratio of leveraged positions in the futures market to the exchange’s ratio. $XRP reserves.

According to the data, $XRPBinance’s ELR level fell to 0.16. This is one of the lowest levels recorded since November 2024 and is close to the low of 0.15 seen in April 2026. This decline occurs during a period when $XRPThe price of has corrected about 70 percent from its peak.

The main reason for the decline in ELR would be the reduction in futures positions. The liquidation of some leveraged positions during the price correction resulted in a decrease in the amount of open interest and a decline in the total level of leverage in the market.

CryptoQuant claims that this leverage cleanup is important to the ongoing correction process. According to the analysis, excessive debt accumulated in the market makes price movements more fragile and unpredictable, while offsetting positions can help the market stabilize 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 leveraged positions are liquidated, the $XRP The price increased by over 790% and the ELR level rose again as leverage re-entered the market during the price rally.

Analysts added that the current market structure does not guarantee another surge of the same magnitude. $XRP. However, it was stated that after the delegitimization cycle, it is important for investors to assess market conditions and potential positioning opportunities.

*This does not constitute investment advice.