XRP Update: Considering a Short Position on XRP? You Could Face a Squeeze.

XRP is currently trading above $1.40, buoyed by several positive developments, particularly its recent expansion into the Middle East and partnership with OKX. Data from derivatives indicates that the apparent calm may be masking a potential surge, which could adversely affect short sellers when it occurs.

An analysis from CryptoQuant reveals a significant discrepancy between XRP’s estimated leverage ratio on Binance and its present price level. The leverage ratio has plummeted back to around 0.1, a level last observed in late October 2024, when XRP was priced at approximately $0.50. While today’s price is nearly three times higher, similar patterns may emerge again.

$XRP leverage ratio on Binance has decreased to ~0.1, a historically low figure, while the price remains near $1.30.
Low leverage combined with a high price indicates an under-positioned market.
If leverage increases, conditions are favorable for a significant upward movement. pic.twitter.com/C1rGHa3erp

— XRP Update (@XrpUdate) May 2, 2026

The last instance of a similar divergence resolving positively occurred between late June and mid-July 2025, when XRP rose from $1.96 to $3.65 as the leverage ratio increased from below 0.3 to just under 0.6 over a four-week period.

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Can XRP Break Free from Its News Range and Trigger a Short Squeeze?

XRP is presently valued around $1.40, consolidating within a narrow range that has persisted for several sessions. Trading volume is currently low, even as the market shows signs of improvement. However, low-volume consolidation above critical support is interpreted differently than a low-volume decline.

Binance’s estimated leverage ratio for XRP is approximately 0.1, while the price remains significantly above pre-breakout levels. Excess speculative positioning has already been eliminated. What remains is a relatively clear slate for the next directional shift.

XRP USD, TradingView

If leverage begins to rebuild as new capital flows in, it could propel XRP toward the $2.00 psychological threshold and potentially retrace to the mid-2025 highs near $3.65.

Conversely, if the price drops to align with the low-leverage environment, a retreat back toward the $1.00–$1.10 range would technically “resolve” the divergence without triggering a squeeze. It is evident that passive short exposure at this juncture carries asymmetric risk. A leverage rebuild could occur rapidly and dramatically.

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Bitcoin Hyper Attracts Early Movers as XRP Builds Pressure

For traders monitoring XRP’s setup and seeking meaningful upside without waiting for a long-established asset to address its derivatives backlog, the early-stage presale market presents a distinctly different risk profile.

One project currently gaining attention is Bitcoin Hyper ($HYPER), touted as the first-ever Bitcoin Layer 2 with complete Solana Virtual Machine (SVM) integration.

The premise is clear: Bitcoin is slow, costly, and largely unprogrammable. Bitcoin Hyper aims to address all three limitations simultaneously while providing sub-second finality, low-cost execution, smart contract functionality, and maintaining Bitcoin’s foundational security. The SVM integration is the standout technical feature, with the project claiming performance that rivals (and potentially surpasses) Solana itself.

$HYPER is currently priced at $0.0136, with $32.5 raised to date. Staking is active with a high 36% APY for early participants.

The presale details can be found on the Bitcoin Hyper presale page.

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