Why XRP’s 0.16 Leverage Floor Ends the Era of Flash Crashes – And the Hope for a Quick Recovery

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Ah, XRP – always just so close to escaping its perennial rut, yet forever tiptoeing around the $1.33 mark like a squirrel in a cage of ice cubes. It’s not exactly “breaking news,” but yes, selling pressure continues to weigh it down like a heavy wool sweater on a hot summer day. The crypto market, as usual, is stuck in that uncomfortable phase where Bitcoin just… doesn’t want to move, and altcoins are caught in a whirlwind of “maybe this time” optimism and “nope, not yet” reality.

And then there’s the derivatives side – the funhouse mirror where everything looks a little… off. According to some mind-bogglingly insightful analysis from CryptoQuant, the Estimated Leverage Ratio has taken a nose dive after a rather impressive spike. We’re now cruising at a 0.16 floor, which, if you’re unfamiliar, basically screams, “the kids are out of the pool.” Yes, speculative traders, it’s time for you to pack up your toys – volatility and leverage had a brief fling, but they’re not even texting anymore.

What this all means is that the market isn’t overstuffed with gamblers anymore. Speculative positions have been mostly flushed out, leaving behind a relatively empty casino floor. With leverage cooling down, we’re probably not going to see those disastrous liquidations cascading across the market like a poorly planned waterfall. This doesn’t guarantee a bounce back, of course. But hey, if market sentiment decides to be kind, we might just see XRP shake off some of its gloom and find its footing.

Leverage Reset: The Best News for the XRP Market? Not Quite, But Almost

Binance, that goliath of crypto exchanges, is basically the control tower for XRP market dynamics. It’s where the majority of all those nerve-wracking long and short positions are born. And when Binance sneezes, the rest of the market catches a cold. If leverage shifts on Binance, it can send ripples that shake the market like a loose tooth. So, when we talk about “low leverage conditions,” we’re talking about a calm before the storm-or perhaps a non-storm, depending on your point of view.

Right now, with leverage sitting comfortably at 0.16, it’s not just a pause in the action. No, it’s a sign that the market’s speculative juice has been squeezed out. Traders aren’t playing games anymore – they’ve been washed out, leaving a more neutral stage for institutional players. It’s like a game of musical chairs, except everyone’s decided that sitting is overrated. If XRP doesn’t start pulling in some spot demand, though, it might continue its gentle slide sideways, like a tired glacier.

XRP Price: Stuck in a Downward Spiral, Please Hold for Updates

XRP’s price chart isn’t just weak – it’s practically pleading for a break. With lower highs and lower lows marking its every move since the late-2025 peak (remember $3.50? That was adorable), the latest dip around $1.33 is starting to feel like an eternal winter. Forget short-term pullbacks; this is the slow, steady grind of a market that’s still licking its wounds. Each feeble attempt to recover seems to be crushed under the weight of… well, its own price action.

Technically speaking, XRP is flirting dangerously below the 50-, 100-, and 200-period moving averages, which are all pointed firmly downward. The chart’s clear message? Keep holding onto your hats, folks, this downtrend has legs. The 200-period average near $2 is now your reminder that this ship hasn’t even begun to consider returning to safe harbor.

Volume? Oh, it’s declining. Nobody’s showing up for the party anymore. The only action that seems to provoke excitement is a brief, sharp sell-off – which, as you may have guessed, is not exactly the hallmark of fresh, eager buying. So, we wait… and we wait.

As for support, the $1.20-$1.30 region is looking like the nearest thing to a safety net. If it breaks below that, things could get ugly – and fast. A further dip might expose some pockets of low liquidity, turning what was already a bear market into a full-on grizzly hunt. But if XRP can somehow claw its way back above $1.60, well, maybe – just maybe – we can talk about a neutralizing of bearish momentum. But let’s not get ahead of ourselves.

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2026-02-25 09:58