XRP is struggling to hold the $1.35 level as the market continues to trade sideways within a range that has defined its price structure for weeks, with no clear breakout in either direction. Holding through this kind of stagnant movement takes real patience — and a recent CryptoQuant report has identified a hidden structural condition that changes what this consolidation might actually be building toward.
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The report looks at the relationship between XRP’s leverage ratio and its price. What it found is a divergence that the data describes as inherently unstable. The leverage ratio is low and moving sideways, reflecting a market where speculative positioning has been significantly reduced. Yet the price remains relatively high, despite the lack of leverage support. In most markets, low leverage and a resilient price don’t coexist for long. This divergence creates a tension that eventually resolves in one direction or the other.
The direction the report points to isn’t random. When leverage has been flushed out and the price has held steady through that flush, the market is no longer driven by speculation. It’s being supported by something more structural — genuine demand absorbing supply without the help of borrowed capital. That’s the foundation the CryptoQuant report highlights. The next question is what comes in to complete it.
The Market Looks Quiet. It Is Loading
The CryptoQuant report is clear about what history suggests happens next. Divergences between a low leverage ratio and a resilient price don’t last forever — they are inherently unstable setups that resolve with directional force. The resolution follows one of two paths: either the price drops to match the leverage ratio, closing the gap from above, or the leverage ratio rises sharply to meet the price, closing the gap from below. The second path is the one that often leads to a move most participants miss, because nothing in the price chart signaled it was coming.
The current setup points toward the second path for a specific reason. Leverage has been flushed out. Speculative excess has been reduced. Yet the price hasn’t collapsed to match the depleted leverage environment. That resilience is the signal — it means genuine demand is absorbing supply without the mechanical support of borrowed capital. When new long-side leverage eventually re-enters a market in that condition, it doesn’t find a fragile price structure propped up by speculation. It finds a base that has already proven it can hold without leverage, meaning the additional fuel from returning leverage produces a disproportionate price response.
The report’s conclusion is the most important takeaway for anyone watching XRP right now. These periods don’t end with slow climbs. They tend to produce sudden and powerful price expansions — the kind where the leverage ratio and price close their gap rapidly and at the same time, creating the squeeze-driven move that the current setup has been quietly building toward.
The market is calm. That doesn’t mean nothing is happening.
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XRP Holds Range Floor As Downtrend Loses Momentum
XRP is trading near $1.37 on the 3-day timeframe, stabilizing after a prolonged downtrend that began following the mid-2025 highs near $3.50. The broader structure still shows lower highs and ongoing selling pressure, but recent price action suggests downside momentum is weakening as the market establishes a base.
The most important development is the formation of a horizontal support zone between $1.25 and $1.35. This area has been tested multiple times since February and continues to hold, indicating consistent demand stepping in to absorb selling pressure. Each dip below this zone has been met with relatively quick recoveries, reinforcing its strength.Structural importance. Related reading: Binance Ethereum Supply Hits 2020 Levels While Staking Locks A Third: Repricing Ahead? However, the moving averages are still acting as overhead resistance. XRP remains below the 50-day, 100-day, and 200-day moving averages, all of which are either trending downward or flattening out. This setup confirms that the macro trend hasn’t shifted yet, and any rallies into the $1.50–$1.70 range are still being sold into. Volume also shows a lack of conviction. The spike during the initial breakdown hasn’t been followed by steady accumulation, and recent activity points to low participation. XRP is compressing near the bottom of its range. A reclaim of $1.50 is needed to challenge the downtrend, while a break below $1.25 would likely trigger another leg lower. Featured image from ChatGPT, chart from TradingView.com.
Frequently Asked Questions
Here is a list of FAQs about the scenario where XRP leverage is cleared out but the price holds steady
BeginnerLevel Questions
1 What does it mean that XRPs leverage has been cleared out
It means that a large number of traders who were using borrowed money to bet on XRPs price moving up or down were forced to close their positions usually because the price moved against them This is often called a liquidation event
2 Why is the price still holding steady if all that leverage got wiped out
It suggests that there is strong spot demandpeople actually buying XRP with their own cash not borrowed money This real buying pressure is acting like a floor under the price preventing it from crashing even after the forced selling is done
3 Is it a good sign or a bad sign that the price didnt drop after the leverage was cleared
Its generally considered a neutraltobullish sign It shows the market isnt overly dependent on borrowed money to stay afloat If the price holds it often means the weak hands are gone leaving behind stronger longterm holders
4 What does spot demand mean in simple terms
Spot demand is when someone buys XRP directly on an exchange to own it with the intention of holding it or using it Its the opposite of using leverage which is just betting on the price with borrowed money
Intermediate Advanced Questions
5 What usually happens next after a major leverage flush like this
Historically after a leverage cleansing the price often consolidates for a while If spot buying continues the price can slowly grind higher If it fails its a sign that the market is exhausted The key is watching for a breakout or a breakdown from this steady range
6 Could this steady price be a dead cat bounce or a real reversal
It could be either A dead cat bounce is a temporary recovery after a big drop The difference here is that this price is holding after the drop not bouncing sharply A slow steady hold is more reliable than a fast volatile bounce Look for increasing volume on green candles to confirm a real reversal