XRP Leverage Soars on Binance Amid Growing Bullish Sentiment

XRP has seen a significant increase in leverage on Binance, reaching its highest level in over seven months. According to data from CryptoQuant, the estimated leverage ratio of XRP on Binance has climbed to approximately 0.213, indicating that traders are using borrowed funds to establish larger positions.

This surge in leverage could have both bullish and bearish implications, as noted by a CryptoQuant contributor. On one hand, higher leverage accompanied by rising prices and open interest may indicate growing confidence and the opening of new positions. However, elevated leverage can also make the market more vulnerable to liquidations.

Currently, XRP is trading around $1.46, down nearly 3% over the past 24 hours. Open interest stands at roughly $3.62 billion, with Binance accounting for about $2 billion of that total. Liquidations have also picked up alongside the recent pullback, with approximately $18.9 million worth of XRP positions being liquidated over the past 24 hours.

The derivatives market is heavily skewed toward long positions, with a ratio of 2.41 among Binance users and above 2 among top traders. This indicates a strong preference for bullish exposure, which may be driven by growing confidence in XRP's price movement.