XRP’s 44% gain over the past week has attracted fresh leverage to the derivatives market, increasing the possibility of a sharper pullback if the recent rally starts to reverse.

CryptoQuant data show XRP’s estimated leverage ratio on Binance has risen to around 0.21, marking its highest level since January. The measure compares derivatives open interest with XRP reserves held on the exchange, with higher readings indicating that leveraged exposure is growing relative to available reserves.

Trading positions are also strongly skewed toward the upside. CoinGlass data showed that roughly two Binance accounts were long XRP for every one account holding a short position on Wednesday. Among top traders, the long-to-short ratio was closer to three-to-one, while OKX showed about two long positions for every short.

Futures activity has surged well above spot-market trading. XRP futures recorded roughly $6.4 billion in volume during the previous 24 hours, more than five times the approximately $1.2 billion seen in spot markets. Futures open interest stood near $3.45 billion.

XRP Leverage Rises With the Rally

The return of leverage comes as XRP posts its strongest run in months. The broader crypto market accelerated after the U.S. Treasury expanded its bond-buyback program last week, contributing to lower long-term yields. Bitcoin climbed from below $68,000 to almost $80,000, while XRP gained more rapidly than BTC and many other major cryptocurrencies.

XRP has also benefited from several ecosystem developments. Ripple recently backed an institutional credit fund that plans to issue RLUSD-denominated loans through the XRP Ledger.

Separate ledger data also showed that a growing share of XRP activity is occurring during the period when London and New York trading hours overlap.

After briefly moving above $1.50, XRP fell nearly 5% over the previous 24 hours on Wednesday to around $1.44.

Crowded Longs Could Amplify a Decline

The elevated leverage ratio and roughly $3.45 billion in futures open interest heavily weighted toward long positions could leave XRP exposed to a wave of liquidations if prices continue to fall.

When traders fail to maintain sufficient collateral for leveraged positions, exchanges can automatically close those trades. The resulting forced selling can compound downward pressure and potentially transform an ordinary correction into a much larger decline.

XRP maintained relatively modest leverage levels through most of 2026. The last time the estimated leverage ratio reached a similar level was in January, when the token was trading above $2.

With leverage now returning rapidly after a 44% weekly rally, the concentration of bullish positions could increase XRP’s vulnerability to sharp price swings if traders begin unwinding their longs.