XRP Leverage Resets to February Lows After Fed Decision

Leverage Unwind Pressures XRP

XRP has retreated below $1.35 as traders unwind leveraged positions following the Federal Reserve's April 29 policy decision. CryptoQuant data shows derivatives activity has compressed to levels not seen since February, indicating a broad pullback in speculative positioning across crypto markets.

The deleveraging wave reflects renewed caution among traders concerned about Fed rate projections and macro headwinds. XRP, which had benefited from earlier market strength, is among the assets experiencing sharp position reductions as traders reduce exposure.

Support Levels at Risk

XRP is now at a critical juncture near $1.35. A sustained break below this level would test support at earlier lows established during the February volatility. The compressed derivatives environment suggests liquidity may thin further if sellers push past current support, potentially triggering additional liquidations.

Why It Matters

For Traders

XRP holding or breaking below $1.35 will determine whether further downside unwinds to February lows; low derivatives volume means moves could accelerate.

For Investors

Fed-driven macro shifts are pushing leverage out of crypto broadly; macro-sensitive assets like XRP may remain under pressure until rate clarity emerges.

For Builders

Reduced derivatives activity and lower leverage ratios may suppress volatility needed for efficient price discovery on Layer 1 payment networks.