"Big move coming soon"...XRP volatility expansion scenario

▲ XRP/AI generated image ©

XRP (Ripple)'s leverage ratio has fallen to historically low levels, signaling that significant volatility is hidden behind a quiet market.

According to the cryptocurrency media outlet Finbold on May 1st (local time), based on CryptoQuant data, XRP's estimated leverage ratio on Binance dropped to approximately 0.152. This is slightly higher than the 0.132-0.150 range recorded in late March and early April, but still represents a low leverage environment similar to late 2024.

The outlet analyzed that a structure where prices are maintained while participation in leveraged positions decreases typically precedes a strong directional movement. If funds flow back in when investors are observing without leverage, the upward momentum could expand, but conversely, if the market turns bearish, downward volatility could also increase.

In fact, XRP rose 1% over the past 24 hours, trading at $1.39, but showed a relatively sluggish performance compared to Bitcoin (BTC), which rose 2.19% during the same period. The outlet interpreted this as a lagging reaction to Bitcoin's rise rather than an increase in XRP's own demand.

The market environment is also unfavorable for altcoins. The Altcoin Season Index dropped to 38, indicating a shift of funds towards Bitcoin, and XRP trading volume also decreased by about 30%. The price is also trading below its 7-day simple moving average of $1.40, failing to secure clear upward momentum.

In the short term, XRP is likely to explore its direction between the $1.37 support level and the $1.40 resistance level. Analysis suggests that if $1.37 breaks, there is room for a decline to $1.28, but conversely, if $1.40 is recovered, an attempt to re-ascend is possible. Ultimately, the key variable is that in a low leverage environment, the next volatility could be significant in either direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*