- Published on
XRP holds $1 support as network activity rises and leverage clears out
- Authors
- Name
- DeepHorus
XRP held above the crucial $1 support level during the latest trading session, rising 1.59% to $1.0544, as network activity surged and leveraged positions cleared out. The token remains trapped below resistance near $1.10, but improving fundamentals suggest a potential shift in market dynamics. This development matters because XRP has been under pressure from a 19% monthly decline, yet the $1 psychological level has held, providing a foundation for a possible recovery.
Network activity has spiked sharply in recent weeks. Daily active addresses rose from 23,000 on June 14 to nearly 39,500 by June 27, a 72% increase in just two weeks, according to on-chain data. Meanwhile, XRP spot exchange-traded funds (ETFs) recorded an eighth consecutive week of inflows, bringing cumulative inflows to $144.7 million. On June 26 alone, XRP ETFs added $15.6 million in net inflows, contrasting with significant outflows from bitcoin and ether funds.
Leverage in the XRP market has reset dramatically. Open interest across major exchanges fell from a peak of 1.3 billion to below 150 million, its lowest level since July 2025, signaling that crowded long positions have been largely liquidated. This cleanup reduces the risk of a sudden selloff and provides a cleaner setup for traders. Funding rates have turned negative, further indicating that speculative excess has been removed.
Despite these positive developments, XRP's price remains capped. The token is trading below major moving averages, including the 50-day EMA near $1.20 and the 100-day EMA around $1.31. The 4-hour Relative Strength Index (RSI) has recovered from oversold territory to 46 but remains below the neutral 50 level, suggesting momentum has not yet turned bullish. Price consolidated between $1.03 and $1.06 after a brief volume spike on June 29.
Market observers remain cautious. "The on-chain picture is stronger than the chart," analysts note, pointing to rising active addresses, steady ETF inflows, and stable exchange reserves. However, until XRP breaks above the $1.10 resistance level, the market remains range-bound rather than in a confirmed recovery. A break below $1.00 could open the door to $0.90-$0.87, while a reclaim of $1.20 would signal a shift from defense to recovery.
Looking ahead, traders should monitor key levels: $1.00 as crucial support, $1.06 as first resistance, and $1.09-$1.10 as the next hurdle. The improving fundamentalsâhigher network activity, reduced leverage, and persistent ETF inflowsâprovide encouraging signs, but price action must confirm. The market awaits a decisive move either above $1.10 or below $1.00 to determine the next trend.
