XRP is currently hovering close to a crucial support area as technical indicators and on-chain data point in different directions. While short-term rebound scenarios are being discussed, ongoing selling activity from large investors continues to exert downward pressure on the price. Against this backdrop, XRP’s near-term outlook appears set to fluctuate around the $1.06 level as July 2026 approaches.
Signs point to possible short-term recovery
On the daily chart, the Tom DeMark Sequential indicator has triggered a “9” candle signal, viewed as a sign of exhaustion after the latest round of selling. This development suggests that the downward trend is weakening and a brief price recovery could be on the horizon.
Adding to the positive signals, XRP has formed a Morning Star Doji pattern over the past three sessions, which in technical analysis often indicates that downward momentum is fading and a local bottom may be forming. If buying volume picks up notably, the price could first target $1.27, followed by the $1.35 zone.
Network data reveals higher usage
On-chain activity on the XRP Ledger has accelerated in recent weeks. Data from Santiment shows that the number of daily active addresses has risen from 23,000 to around 40,000, marking an almost 50% increase in a short period. The XRP Ledger is known as the distributed ledger infrastructure where transactions in the Ripple ecosystem are recorded.
Santiment noted that some of the address increase may be driven by internal movements between wallets, rather than new demand.
This assessment suggests that while on-chain activity is rising, it does not necessarily confirm strong market demand on its own. Nevertheless, the growing usage is not being dismissed entirely, as it could support liquidity conditions and influence price dynamics.
Large investor sales highlight key support
Despite these positive signals, significant attention is being drawn to ongoing sales by large holders. According to Santiment, major investors—often referred to as whales—have sold over 30 million XRP within the past five days. If this selling continues, it could limit any potential upward movement in the short term.
Data from Glassnode highlights the $1.06 level as a critical support point for XRP. More than 830 million XRP have previously changed hands in this zone, making it an area closely watched by analysts as a potential region where buyers could return in strength.
If the price remains above $1.06, the prospects for a short-term recovery improve. However, if this support is breached, subsequent support levels are seen at $0.80, $0.62, and $0.51. Currently, XRP finds itself at a pivotal point, with bullish signals and selling pressure creating a delicate balance in the market.
