XRP leverage on Binance has surged to its highest level in about seven months, increasing the risk of wider volatility.

U.Today, a blockchain media outlet, reported on Monday that CryptoQuant data showed Binance's estimated XRP leverage ratio rose to about 0.213, the highest level in seven months.

The metric shows how much leverage is being used in the market compared with the exchange's XRP holdings. A higher reading means traders are using borrowed funds to build larger positions.

An increase in leverage does not necessarily mean an immediate shift in trend. A CryptoQuant analyst noted that rising leverage can be a bullish or bearish signal. If XRP's price and open interest rise together while leverage increases, it can indicate fresh positions and improved investor sentiment. High leverage, however, can make the market more vulnerable to liquidations.

Liquidations also rose during a recent XRP pullback. XRP is trading around $1.46 and is down about 2.6 percent over the past 24 hours. Open interest over the same period was estimated at about $3.62 billion, of which Binance accounted for about $2.0 billion.

Derivatives indicators also showed a clear tilt toward long positions. XRP positions liquidated over the past 24 hours were worth about $18.9 million. Binance's account-based XRP long-to-short ratio stood at about 2.41, and it was above 2 among top traders. That indicates the derivatives market is weighted toward long positions.

If high leverage and the long tilt persist, even a small price drop could trigger cascading liquidations. If price and open interest rise together, it could be interpreted as a sign of fresh inflows and a recovery in risk appetite. For now, the direction of the XRP market is expected to hinge on Binance's leverage level, changes in open interest and the trend in long-position liquidations.