XRP has recovered significantly from its June low of $1.05, now trading near $1.14 after a period of heavy market selling tested support levels and triggered major liquidations in leveraged positions. Renewed buying interest has since helped the price stabilize in the short term, contributing to a more balanced market outlook.
Technical indicators hint at possible recovery
CryptoPulse, a prominent market watcher, interprets the recent pullback as a necessary clearing phase before a meaningful upward move. The analyst notes that the break of the $1.13 support forced weaker positions out of the market, potentially paving the way for a healthier advance.
According to CryptoPulse, there are signs of bullish divergence emerging in XRP. Although the price remains below average levels, a notable weakness in downward momentum is apparent and, historically, price often gravitates back toward the average in such scenarios.
The latest rebound has also produced an interesting pattern on the Relative Strength Index (RSI): while price posted a lower low, the RSI recorded a higher low, a classic sign of bullish divergence. This setup could signal that the selling pressure on XRP is starting to lose momentum.
Derivatives data and ETF flows remain subdued
However, conditions in the derivatives market remain cautious. Open interest in XRP futures has fallen from an average of $2.96 billion at the start of June to $2.45 billion, suggesting that speculative appetite is down and expectations for a rapid short-term rally are muted.
ETF flows for spot XRP remain choppy. Tuesday saw $7.44 million in inflows, followed by $1.2 million on Wednesday, but Thursday recorded no net flows. Cumulative inflows now stand at $1.43 billion, while net assets managed through the ETF are around $985 million.
Key areas: $1.04 support and $1.30 resistance
Technical analyst ChartNerd highlights that, on the two-week chart, XRP has pulled back to the lower regression band of the Gaussian Channel near the $1.04 region. This threshold has proven significant in previous cycles as well.
Glossary: The Gaussian Channel is a technical channel indicator used to track a price’s statistical trend and potential boundaries. Regression bands show upper and lower limits according to historical trends, helping identify possible support and resistance areas.
ChartNerd confirms that one of the signals being monitored has played out, as XRP has revisited the lower band of the Gaussian Channel near $1.04 on the two-week chart—a behavior that has recurred in past market cycles.
XRP is currently trading below its 10, 50, 100, and 200-day exponential moving averages. The $1.30 level, aligned with the 50-day EMA, stands out as the primary resistance point being watched by the market. Above this, the 100-day EMA sits at $1.39, and the 200-day EMA at $1.61.
RSI 14 is at 35.10, close to the oversold threshold, while the MACD remains modestly negative at minus 0.06656. On the flip side, the Momentum 10 indicator has generated a short-term buy signal. According to TradingView’s compiled outlook, there are 14 sell signals, 10 neutral, and 2 buy signals, giving the overall picture a neutral bias. At the time of reporting, XRP was trading near $1.14, having gained 3.06 percent in the past 24 hours.
