XRP, a rebound but 'stuck in place'? A warning of a hollow rally

▲ Photo: XRP

XRP successfully rebounded in price, but analysis suggests that risk appetite, a key driver of the market, remains collapsed.

According to NewsBTC, a cryptocurrency media outlet, on April 28 (local time), recently, XRP has recovered a significant portion of its price after a sharp drop in late March, but the internal market structure shows a completely different pattern than before. The leverage ratio, a key indicator, has not recovered to pre-rebound levels, indicating a significant contraction in investor sentiment.

Data shows that in mid-March, the XRP leverage ratio rose to approximately 0.185, indicating that investors had built aggressive positions based on strong conviction. However, a subsequent sharp price correction caused the ratio to plummet to around 0.13. This implies not just a simple liquidation of positions, but a significant decrease in market participants' risk appetite itself.

Although the price rebounded afterward, the leverage ratio remained in the 0.15-0.16 range, and after appearing to temporarily recover to 0.175, it fell back again. The key change is that aggressive betting, as seen in the past, has not resumed and remains within a limited range.

This disparity shows that the current rise has a different nature than previous ones. While past bull markets were built on strong leverage and aggressive investor sentiment, this rebound is proceeding with more conservative positions and limited risk exposure. This is a result of market participants shifting to cautious strategies, reflecting their recent experience with sharp declines.

As a result, the XRP market is undergoing a structural change where price recovery and sentiment recovery are not happening simultaneously. As long as leverage-based conviction is not restored, upward momentum may be limited, and the current rally is being interpreted as a different form of upward phase than before.

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