Investors scale back XRP bets as borrowing power hits unprecedented downtrend

The XRP leverage ratio is still on a noticeably downward momentum, even with the price holding above the psychological $1.35 mark. For example, the latest XRP Ledger (XRPL) data from CryptoQuant puts the estimated leverage ratio on Binance at approximately 0.152. While slightly higher than the 0.132–0.150 range that marked late March and early April, the number is still in the zone more characteristic of late 2024. This kind of setup, namely lack of interest in leverage positioned coupled with resilient prices, typically precedes a sharp directional move. If buying pressure accelerates, XRP could see an outsized move as capital returns and the market becomes comfortable with leverage once again. However, the downside is also possible if the broader market turns weak. Zooming out, it is obvious that XRP is on a falling year-to-date (YTD) trend, with some indicators suggesting the correction phase is not over. Still, XRP has edged higher over the past 24 hours, rising 1% to trade at $1.39, although it has underperformed the wider crypto market, which was lifted primarily by strength in Bitcoin (BTC), which has climbed 2.19% the same period. The move thus appears largely beta-driven. That is, XRP is benefiting from Bitcoin’s advance rather than independent demand. With no clear macro triggers to point at, the XRP price was more reactive than proactive. In fact, the Altcoin Season Index has dropped 7% to 38, pointing to a shift away from altcoins. As a result, XRP’s technical backdrop does not appear especially bullish, with the token still trading slightly below its 7-day simple moving average (MA) at $1.40 and trading volumes falling nearly 30%. In the near term, XRP faces support at $1.37 and resistance at the 7-day average of $1.40. Holding above the daily pivot could open the door for a retest of the latter, while a breakdown below $1.37 risks a deeper pullback toward the recent swing low near $1.28. Featured image via Shutterstock