XRP rebounded sharply this week, climbing back above $1.15 after finding solid support near the $1.03 level. The recovery was fueled by a dramatic 62% surge in daily trading volume, which reached $1.8 billion, signaling renewed trader interest and liquidity in the market.
Trading Activity Accelerates as XRP Recovers
The latest rebound follows a challenging June for XRP holders, during which the token retreated from February highs above $1.55 to a low between $1.00 and $1.04 by late June. That decline marked one of the largest holder drawdowns in over a decade. Despite the price drop, institutional demand for XRP-linked spot exchange-traded funds (ETFs) weakened, with net inflows falling from $132 million in May to just $59 million in June — a 55% monthly decline.
However, on-chain metrics painted a more optimistic picture. According to Santiment, daily active addresses on the XRP Ledger climbed to their highest level since February, when XRP was trading between $1.47 and $1.54. This suggests that retail and network activity is on the rise even as institutional inflows cool.
Binance Supply Shrinks While Futures Reset
Data from CryptoQuant researcher ArabxChain showed that the XRP Binance Scarcity Index reached 0.77, its highest reading in more than two years. Binance’s XRP reserves have fallen by roughly 20% since November 2024, dropping from around 3.27 billion tokens to nearly 2.6 billion. Exchange holdings also declined from approximately 2.8 billion in May to 2.6 billion in early July, indicating tightening supply.
In addition to lower exchange balances, analyst ChartNerd highlighted what was described as XRP’s “3rd Retest” on social media platform X, identifying the pattern as a favorable entry area for traders building positions through technical analysis.
Technical Levels Remain in Focus
Futures market data from Coinglass revealed that funding rates turned deeply negative between June 26 and June 28 as XRP hit its recent low. This positioning set the stage for a short squeeze, which subsequently pushed XRP toward $1.13 as funding rates returned to slightly positive territory, signaling more balanced futures positioning.
Looking ahead, immediate resistance sits near $1.20, a level that capped the mid-June recovery attempt. A daily close above that threshold would expose the $1.35 to $1.40 range, representing roughly 22% upside from current prices. The daily Relative Strength Index (RSI) remains near 55, indicating room for further gains before reaching overbought conditions. The 200-day Exponential Moving Average (EMA) stands near $1.50, while a move below $1.00 would invalidate the current recovery structure.
Notably, XRP trading volume recently surpassed that of Bitcoin on South Korean exchange Upbit, adding another data point as traders watch whether stronger demand continues to develop.
What’s Next?
XRP has successfully recovered above $1.15 after finding support near $1.03, supported by increased trading volume and strengthening XRP Ledger activity. Meanwhile, declining reserves on Binance and improving futures positioning reflect shifting market dynamics. Investors will now be watching closely to see whether XRP can break decisively above the $1.20 resistance level in the coming sessions.
Leave a Reply