the XRP Derivatives exposure on Binance has risen to a two-month high, increasing the risk of a liquidation chain if price momentum reverses.
As of May 15, the estimated leverage ratio (ELR) for XRP on Binance, which measures the ratio of derivatives exposure to the underlying collateral, had risen to around 0.179, its highest level in two months, according to Data from Cryptoquant Analyzed by Feinbold. As such, risks rose in the derivatives market as the token retested the crucial supply level around $1.50.
Historically, a higher return on assets ratio has increased the likelihood of further capitulation, stimulated by a long squeeze – a scenario in which falling prices force long positions to be liquidated, thus enhancing selling pressures. As such, if the price of XRP reverses sharply, high leverage could trigger a series of forced liquidations, thus amplifying losses and accelerating a deeper price decline.
A similar situation was recorded in mid-March 2026, when the ELR price on Binance rose above 0.18, after which the XRP price fell by more than 17%, falling from around $1.50 to a low near $1.27 as leveraged positions fell sharply.
XRP price forecast amid ELR peak
Amid the rising ELR for XRP on Binance, the largest cryptocurrency exchange by daily trading volume, the price of the token indicated a bearish outlook in the near term. Over the past 24 hours, the price of XRP has fallen approximately 2% to around $1.44 at the time of reporting.
As such, if the token experiences a spike in ELR on Binance amid falling prices, further capitulation could be imminent. Moreover, XRP price has remained trapped in a horizontal consolidation situation for several weeks amid bearish sentiment, fueled by a news selling scenario after the resolution passed. The law of claritya US federal law proposed to legalize crypto assets.
