XRP Leverage Hits 7-Month High as Analyst Sees $1.88 Breakout

XRP has been making waves in the crypto market, with its price holding above a critical long-term support level. According to CryptoQuant data, traders have been piling into leveraged positions, pushing XRP's estimated leverage ratio on Binance to 0.213, its highest level in more than seven months.

Market commentator Dark Defender has identified $1.88 as the next major test for XRP, which he believes could shift focus toward the $5.8563 Fibonacci extension and potentially even higher targets of $5.85-$9 in the long term.

The analyst's Elliott Wave structure suggests that a break above $1.88 would be a significant bullish signal, but it's worth noting that rising leverage can cut both ways - if XRP reverses while leverage remains elevated, forced liquidations could amplify the downside.

XRP has already rebounded 41.69% from its low to reach as high as $1.6995, and Dark Defender believes that only a monthly close below $0.9327 would invalidate the bullish setup.