Analyst: XRP's estimated leverage ratio on Binance has fallen to about 0.14, the lowest in three months

November 11 — CryptoQuant analyst Arab Chain noted in a post that XRP's estimated leverage ratio on Binance has dropped to about 0.14, the lowest level in three months, with the asset currently trading at around $1.09. The metric reflects the level of leverage usage relative to the platform's available reserves and is a key indicator for assessing the risk of trader activity in the derivatives market. A drop in the leverage ratio to this level suggests traders are relying less on leverage and may be reducing their risk exposure, scaling back positions financed with borrowed funds. This may be related to the closing of existing positions or a reduced willingness to use leverage under price pressure. A lower leverage ratio can reduce the market's sensitivity to sharp price swings and lessen the likelihood of large-scale liquidations triggered by excessive leverage, but it does not mean risk has disappeared—price action and liquidity levels remain key factors affecting liquidation risk.