XRP Eyes $1.88 as Leverage Hits 7-Month High: What's Going On?

XRP is holding above a critical long-term support level, but CryptoQuant shows traders are simultaneously piling into leveraged positions.XRP’s $1.88 Test Comes NextMarket commentator Dark Defender said XRP’s current Elliott Wave structure can be traced back to 2023, when he first mapped a target near $0.90.The analyst’s 2024 XRP structure targeted $3.60 from around $0.50, a level XRP ultimately reached in January 2025 before entering a correction.He maintains that $0.9327 remains the critical Fibonacci support, with XRP’s recent $0.9852 low preserving the bullish Elliott Wave structure.Only a monthly close below $0.9327 would invalidate the setup, Dark Defender said in an X post on Wednesday.XRP rebounded 41.69% from its low to as high as $1.6995, with Dark Defender identifying $1.8815 as the next major test.He noted the target has remained on his chart since February 2025.A break above $1.88 could shift focus toward the $5.8563 Fibonacci extension, with Dark Defender targeting $5.85-$9 for long term.Over the past week, XRP has posted a 40% gain.XRP Leverage Hits Highest Since JanuaryThe bullish technical setup comes as XRP derivatives traders significantly increase their risk exposure.CryptoQuant data shows XRP’s estimated leverage ratio on Binance has climbed to around 0.213, its highest level in more than seven months.The ratio remained comparatively subdued through most of 2026, making the latest increase a sign that risk appetite and speculative activity are returning to XRP’s derivatives market.Higher leverage, however, can cut both ways.Rising leverage could strengthen XRP’s rally if accompanied by higher prices and open interest, signaling stronger trader conviction. However, if XRP reverses while leverage remains elevated, forced liquidations could amplify the downside.That makes the derivatives positioning particularly relevant as XRP approaches Dark Defender’s $1.88 resistance level.Image: Shutterstock