Woofun AI reports that XRP's 44% rally has reignited leverage in its derivatives market, raising the risk of a sharp correction as the token begins to relinquish gains. This surge in leveraged exposure coincides with a broader market shift, where Binance's estimated leverage ratio for XRP has climbed to approximately 0.21, marking its highest level since January.

Structurally, the derivatives market is heavily skewed toward bullish positions. On Wednesday, there were two long accounts for every one short account on Binance, while top traders exhibited a three-to-one ratio. OKX mirrored this sentiment with roughly two longs for every short.

Woofun AI data shows futures volume reached $6.4 billion over the previous 24 hours, five times the $1.2 billion spot volume, with open interest standing at $3.45 billion.

The rally was fueled by macro catalysts, including the U.S. Treasury's expanded bond-buyback program, which lowered yields and propelled bitcoin from below $68,000 to nearly $80,000. XRP outpaced bitcoin, aided by Ripple's backing of an institutional credit fund using RLUSD stablecoin on the XRP Ledger and increased activity during London-New York trading overlaps. Despite hitting a seven-month high above $1.50, XRP dropped 5% to $1.44 on Wednesday, having traded above $2 in January 2026.

With leverage at a seven-month high and $3.45 billion in open positions tilted long, a steep pullback could trigger forced sales as collateral becomes insufficient. These liquidations can exacerbate declines, turning an ordinary correction into a sharper downturn. This marks a significant departure from the low-leverage environment that characterized most of 2026.