XRP's Estimated use Ratio (ELR) on Binance has dropped to 0.16, nearing the April 2026 low of 0.15, marking one of the weakest levels since November 2024. This decline mirrors the conditions leading to XRP's 790% rally in 2024, following a similar deleveraging phase.
During the current downturn, XRP has corrected approximately 70% from its 2025 peak of $3.65, with traders notably decreasing their leveraged positions. As a result, the open interest in futures has fallen, indicating a reduction in speculative activity. Darkfost, a CryptoQuant analyst, stated that this deleveraging is a positive sign, as excessive use often leads to more volatile market conditions.
The current market resembles the mid-2024 setup, when XRP hovered around $0.40 and experienced prolonged consolidation while the ELR decreased to around 0.05. Following that period, XRP surged over 790%, reaching more than $3.60. If history repeats, a similar increase from the current price of $1.10 could propel XRP to roughly $9.80, approaching the significant double-digit threshold.
However, Darkfost cautioned that while monitoring deleveraging cycles offers insight into market structure changes, it does not ensure another substantial rally. Currently, XRP withdrawals have surged, outpacing deposits on major exchanges like Coinbase, Binance, and Bybit, with Coinbase reporting its highest seven-day withdrawal trend since February. Despite these developments, XRP's price remains stable at around $1.10, indicating that the withdrawal dynamics have yet to translate into immediate price increases.
This material is informational and should not be considered financial advice.
