Data from Binance’s Estimated Leverage Ratio (ELR) indicates a significant increase in leverage levels used by traders, coinciding with XRP trading near $1.24. According to the data, the ratio rose to approximately 0.1899, its highest level since the beginning of 2026, reflecting a clear increase in market participants’ reliance on leveraged positions.

The data shows that the ratio fluctuated within a range of roughly 0.15 to 0.18 over the past few months, making several attempts to rise before recently breaking through this range and reaching its highest reading this year. This surge coincided with an improvement in XRP’s price compared to previous periods of decline, reflecting renewed activity in the cryptocurrency’s derivatives market.

From a market perspective, leverage reaching its highest level since the beginning of 2026 could indicate growing trader confidence in the continuation of the short-term upward trend. However, high leverage levels make the market more sensitive to sudden fluctuations, as any sharp price movement can trigger a wave of position liquidations for both bullish and bearish traders. Therefore, developments in this indicator remain an important factor to monitor in the coming period to assess the inherent risk level in the XRP market.

Furthermore, the continued rise in the Estimated Leverage Ratio suggests that traders are becoming increasingly active in the derivatives market relative to spot market activity.

Written by Arab Chain