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XRP is struggling to hold the $1.35 level as the market consolidates in a range that has defined the price structure for weeks without resolving in either direction. The patience required to hold through this kind of sideways action is real — and a CryptoQuant report has just identified a structural condition beneath the surface that reframes what the current consolidation is actually building toward.
The report examines the relationship between XRP’s leverage ratio and its price. What it has found is a divergence that the data describes as inherently unstable. The leverage ratio is sitting low and moving sideways, reflecting a market where speculative positioning has been significantly reduced. Yet the price is holding relatively high despite that absence of leverage support. In most markets, low leverage and resilient price do not coexist for long. The divergence creates a tension that eventually resolves in one direction or the other.
The direction the report is pointing toward is not random. When leverage has been flushed out and the price has held through that flush, the market is no longer being driven by speculation. It is being held by something more structural — genuine demand absorbing supply without the amplification of borrowed capital beneath it.
That is the groundwork the CryptoQuant report identifies. The next question is what arrives to complete it.
The Market Looks Quiet. It Is Loading
The CryptoQuant report is explicit about what history says happens next. Divergences between a low leverage ratio and a resilient price do not persist indefinitely — they are inherently unstable configurations that resolve with directional force.
The resolution follows one of two paths: the price drops to meet 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 produces the kind of move most participants miss because nothing in the price chart announced 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. And yet the price has not 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 does not find a fragile price structure propped up by speculation. It finds a base that has already proven it can hold without leverage, which means the additional fuel of returning leverage produces a disproportionate price response.
The report’s conclusion is the most important sentence for anyone watching XRP right now. These periods do not 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 simultaneously, creating the squeeze-driven move that the current configuration has been building toward in silence.
The market is calm. That is not the same as saying nothing is happening.
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 reflects lower highs and sustained selling pressure, but recent price action suggests that 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 now been tested multiple times since February and continues to hold. Indicating consistent demand stepping in to absorb selling pressure. Each rejection below this zone has been met with relatively quick recoveries, reinforcing its structural importance.
However, the moving averages continue to act as overhead resistance. XRP remains below the 50-day, 100-day, and 200-day moving averages, all of which are trending downward or flattening. This alignment confirms that the macro trend has not yet shifted, and rallies into the $1.50–$1.70 region are still being sold.
Volume also reflects a lack of conviction. The spike during the initial breakdown has not been followed by sustained accumulation, with recent activity showing muted participation.
XRP is compressing at range lows. 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
