Leverage is gone, but there's no buying... XRP danger signal

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XRP (Ripple) has realigned into a 'clean structure' after leverage liquidation, but its direction remains uncertain due to the absence of actual buying demand.

According to crypto media outlet Bitcoinist on May 2 (local time), a massive deleveraging occurred in the XRP derivatives market after the Federal Reserve (Fed) froze interest rates on April 29, rapidly restructuring the market. At the time, interest rates were maintained at 3.50-3.75%, and overall market tension persisted as Jerome Powell stated he would remain on the board even after his term as chairman ended.

According to CryptoQuant data, Binance XRP open interest decreased to approximately $208 million, returning to February 2026 levels. This indicates that most of the leverage positions accumulated since February were liquidated in a short period. In particular, long position liquidations were concentrated from April 17 to the end of the month, adding further selling pressure to the market.

The problem is that real demand has also weakened along with the reduction in leverage. The cumulative spot trading volume indicator on centralized exchanges decreased to approximately $920 million, and net selling pressure expanded in the Binance perpetual futures market. The media analyzed that while the removal of leverage cleared the market, new buying interest to replace it has not yet been confirmed.

The price movement is also limited. XRP is currently trading sideways, maintaining a narrow range around $1.37, and has formed a gradual higher low structure since the sharp drop in February. However, it is trading below the 50-day, 100-day, and 200-day moving averages, indicating that a bearish structure is still maintained in the mid-term.

The key turning point is the $1.35 range. This price level simultaneously acts as a support and equilibrium zone, and the recent confirmation of resistance around $1.45 clearly indicates overhead supply. Decreased trading volume also shows reduced market participation, suggesting the possibility of increased volatility in the future.

The media analyzed that if XRP breaks above $1.45, there is room for it to rise to $1.60, but if the $1.33-$1.35 support level breaks, it could fall to $1.25. Ultimately, the current market is in a phase where it needs to establish a new direction after the removal of leverage, and the recovery of spot demand is identified as a key variable determining the next trend.

*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.*