Recent trading sessions have seen XRP navigating close to the pivotal $1 threshold. The market has experienced a sizable reduction in excessive leverage, which previously contributed to price declines. Over the past day, XRP slid from $1.0476 to $1.0366, representing a 1.05% decrease. Despite this dip, support above $1 persists, drawing investor interest back into the fray.
Why is Leverage Being Scaled Back?
The derivatives market for XRP shows stark changes, with open interest dramatically reduced from $1.3 billion to below $150 million. This not only highlights the unwinding of leveraged trades from the last bullish phase but also signals a significant reshaping of the trading landscape. Within this flux, liquidations of long positions soared 832% above the three-month norm, resulting in the closure of $6.7 million in leveraged trades.
What is Driving Increased Network Activity?
On-chain metrics provide a brighter outlook for XRP. The number of daily active addresses increased, jumping from 23,000 on June 14 to nearly 39,500 by June 27—an impressive growth of 72% over two weeks. Institutional interest also reflects positively, as XRP exchange-traded funds noted $15.34 million in inflows by June 29, indicating strong engagement from major investors.
“XRP continues to defend the $1 region despite the overall weakness in the crypto market. However, for a stronger technical recovery, it would need to reclaim the $1.08 to $1.10 range.”
During trading on June 30, selling pressure nudged XRP below the $1.035 support to $1.0249, where it stabilized. The declining price spurred trading volumes, pushing 24-hour volume to 92.73 million XRP, a 134% increase over the daily average. In subsequent sessions, XRP rebounded from $1.024 to $1.038, surpassing the $1.032 resistance, but continued to range between $1.0201 and $1.0476.
Key technical zones remain under scrutiny. The $1.00 mark acts as primary support, with a breach potentially exposing the $0.90–$0.85 range. Conversely, immediate resistance lies between $1.0250 and $1.0350, with $1.0460 as a critical level to overcome.
- Continued trading below main moving averages keeps momentum low.
- The 20-day EMA is at $1.11, whereas the 50-day and 100-day are positioned at $1.20 and $1.31 respectively.
- Bollinger Bands’ contraction signals reduced volatility; a breakout past $1.12 is needed for bullish recovery.
XRP’s technical stance remains cautious, marked by limited momentum while it oscillates between key price levels. The coin remains under watch for a breakout attempt, as market conditions gradually regain stability.
