An increasing number of XRP (XRP) traders are taking on leverage as the cryptocurrency remains under $1.20. Binance’s estimated leverage ratio has surged to its highest point since early 2026, indicating a heightened risk appetite in a delicate market.
This rise in leverage occurs amidst stagnant on-chain activity, with bearish signals emerging on weekly charts. This scenario positions XRP on the edge of either a speculative recovery or a more severe downturn.
Binance Leverage Reaches 2026 Highs
According to CryptoQuant, Binance’s estimated leverage ratio for XRP increased to approximately 0.1899, marking its highest level since the start of 2026.
Previously, this metric fluctuated between 0.15 and 0.18 for several months. This recent surge indicates that traders are relying more heavily on leveraged positions.
The increase in leverage coincided with XRP’s rise toward $1.24 before pulling back, linking the build-up in leverage to a new wave of speculative trades.
Increasing leverage typically signifies growing optimism about a short-term upward movement. However, it may also leave the market vulnerable to swift liquidation events in either direction.
XRP leverage recently fell to a yearly low, a significant drop from its extremes in 2025. If it moves below 0.15 again, it could indicate that traders are reducing risk exposure. Until that happens, activity in derivatives is surpassing spot market demand.
Increased Social Activity Amidst Stagnant Network Usage
The rise in leverage indicates a growing interest in XRP. However, on-chain metrics present a more complex picture.
Social activity around XRP saw a significant increase toward the end of May and into early June, according to Santiment’s data. This spike ranks among the top occurrences over the past six months.
Conversely, the number of active addresses remained relatively stable over the past two months, hovering around 28,300 in the most recent data.
The conversation around XRP is increasing faster than actual utilization on the network, indicating a sentiment-driven surge rather than genuine demand, similar to recent predictions of a potential bear market trap.
XRP Price Outlook Relies on the $1.17 Support Level
The weekly chart highlights the critical situation for XRP, which is currently valued around $1.20 after declining from its July 2025 peak of $3.65.
Over the past week, the token has increased by about 6%. This provides some short-term support for bulls; however, it’s still around 45% lower than the levels seen a year ago.
The price has faced rejection at a declining trendline on three occasions (indicated by red arrows). A potential fourth rejection is looming as XRP approaches that resistance again.
Additionally, XRP experienced a breakdown from a symmetrical triangle formation, which suggests a long-term price target near $0.73—significantly below the current price range.
At this moment, bulls are working to protect the 0.786 Fibonacci retracement level at approximately $1.17, which is the last significant support before reaching the bearish target.