XRP Leverage Hits Seven-Month High Amid Cooling Rally

XRP's recent rally has attracted leveraged traders back to the derivatives market, increasing the risk of heightened volatility as the cryptocurrency pulls back from its gains.

The estimated XRP leverage ratio on Binance has reached a seven-month high at approximately 0.21, with a significant portion of trading activity concentrated in derivatives. CoinGlass data shows that Binance had roughly two long accounts for every short account on Wednesday, while among top traders, the ratio approached three longs for every short.

The renewed leverage follows a broad cryptocurrency rally triggered by the U.S. Treasury's expansion of its bond-buyback program last week, which helped Bitcoin climb from below $68,000 to nearly $80,000 and propelled XRP to even stronger gains.