Binance’s leverage ratio on Ripple (XRP) coin has just tumbled to a two-year low, raising eyebrows among the XRP community. The globe’s leading crypto exchange saw a stupendous drop in Open Interest (OI), which basically is the amount of unsettled plays on XRP’s price with leverage.
Binance’s XRP Leverage Dwindles To $453M
The sudden shift could have multiple implications on XRP’s future price. Firstly, this signifies rebalancing, latest research from Crypto Quant notes. The $453 million figure on the Open Interest (OI) ratio could also hint at XRP’s price stabilizing as all the excessive leverage got shaken out.
Previously, Ripple coin’s (XRP) leverage count hit yearly peaks twice – at the beginning of 2025 when the SEC concluded its 6-year legal battle against Ripple Labs for the alleged sales of unregistered securities. Then, another sharp OI spike happened in mid 2025, when Ripple’s (XRP) price hit $3.65.
Healthy Shake-Out Doesn’t Stop XRP Sell-Offs
The all-time high was later overshadowed by the price volatility of the broader crypto markets. As Bitcoin (BTC) is still battling the $85K support floor for a bigger rebound, XRP’s next key target is to restore $2 – a crucial psychological level that’s been proven to serve a boost in rallies if held during the storms. For this, whale sentiment has to flip back to buying mode, which is not the case now, judging from the negative CMF index.
On one hand, the massive downswings in leveraged XRP positions on Derivatives markets portray a story of mitigating abnormal pressures when it comes to excessive leverage. Surely, the healthy structural development could put XRP coin among the top long-term investment vehicles without the need to speculate on its price.
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People Also Ask:
Open interest has dropped to ~$453 million. This is the lowest since late 2024. It signals major derivatives re-balancing and less leverage.
OI topped $1 billion multiple times early and mid-2025 on speculative surges. Now it’s declined gradually, then sharply, as traders exit.
Lower leverage weakens momentum. Price faces volatility without breakouts. It now depends more on spot demand than derivatives hype.
Speculators are fleeing. Holiday thin liquidity and year-end derisking drive it. This cuts risky positions that risk liquidations.
Expect a calmer phase. Lower liquidation risks. Prices may stabilize. But real demand is needed for any recovery.
