CryptoQuant’s estimated leverage ratio for XRP (XRP) on Binance fell 26.2% from its September level even as the token gained 2.34% in 24 hours, without revealing traders’ directional bets.
Binance quoted XRP at $1.3660 at 7:09 p.m. ET (23:09 UTC) Oct. 21. The price gain covers the preceding 24 hours; the leverage decline spans a longer period.
CryptoQuant contributor Arab Chain put the ratio at about 0.169 in recent days, compared with 0.229 in September. CryptoQuant calculates it by dividing derivatives open interest, the value of outstanding contracts, by the exchange’s XRP reserves.
Arab Chain said traders closing positions or using less leverage could account for the lower reading. The ratio does not distinguish positions betting on a price rise from those betting on a decline, so it cannot explain the 24-hour price move.
A separate Oct. 20 report on XRP liquidations recorded $850,000 in short positions closed across Binance, Bybit and OKX during one hour. Those closures cover a different period and measure different activity from the Binance leverage ratio.
CryptoQuant said a lower ratio may reduce liquidation risk but does not guarantee less price volatility.
