XRP has rebounded above the $1.10 threshold following a sluggish start to July. The cryptocurrency climbed from its intraday low of $1.02 on July 1 to reach as high as $1.11 during trading on July 3, logging an approximate 3% gain over two days.
Technical signals and institutional flows drive momentum
Several factors fueled this upward movement in XRP. Renewed institutional demand through ETFs, optimistic technical indicators, and Ripple’s launch of payment operations in Europe combined to strengthen market sentiment.
Crypto analyst Ali Martinez highlighted on July 3 that the Supertrend indicator flashed a buy signal for XRP for the first time since mid-June. He noted that the previous buy signal from this tool preceded a 14% rally, and the Supertrend indicator had accurately signaled the last two major corrections of 19% and 16%, respectively.
Ali Martinez stated that the Supertrend indicator on XRP gave its first buy signal since mid-June, and the last such signal came before a 14% increase.
The Supertrend is a technical analysis tool that tracks price trends and potential reversals. It produces buy or sell zones based on whether the price crosses above or below a defined volatility band.
Mini glossary: The Supertrend is an indicator used to monitor price direction and potential trend breaks. It typically operates with an ATR-based calculation and highlights support and resistance levels during periods of heightened volatility.
After two days of outflows, US-based XRP ETFs recorded a net inflow of roughly $7 million on Thursday. Total ETF inflows have risen from $1.43 billion on June 1 to $1.49 billion, with average assets under management currently standing at $988 million.
| Indicator | Level |
|---|---|
| July 3 intraday high | $1.11 |
| July 1 low | $1.02 |
| Thursday ETF inflow | Approx. $7 million |
| Total ETF inflows | $1.49 billion |
Ripple’s European move and key price levels
Ripple has launched its Ripple Payments operations across Europe after receiving a temporary Crypto Asset Service Provider authorization under the European Union’s MiCA regulatory framework. Known for its cross-border payments infrastructure, Ripple expanded in a period when some competitors contracted services in response to MiCA compliance demands.
With the temporary MiCA authorization, Ripple began payment operations in Europe, further boosting optimism in the market.
Concerns surrounding Ripple’s scheduled unlocking of 1 billion XRP each month remained limited. Most investors have noted that the majority of these released tokens are typically returned to escrow accounts, reducing the risk to the broader market.
On the daily chart, XRP managed to break above the downward trendline that had capped gains since late May. The $1.10 level has been reclaimed, with $1.12 now serving as a nearby resistance. MACD is showing a bullish crossover, while RSI sits in the mid-60s, signaling that XRP has not yet entered overbought territory.
Short position pressure in the spotlight
XRP is trading above both its 50-day exponential moving average ($1.07) and 100-day EMA ($1.09). The upper Bollinger band approaching $1.11 highlights the primary resistance area, while the 200-day EMA hovers at $1.14.
Data from CoinGlass shows a significant accumulation of short positions between $1.11 and $1.12, with additional short clustering around $1.14. If buying momentum persists, forced short covering could propel XRP’s price toward these levels.
In futures markets, open interest measured 2.2 billion XRP on Friday, slightly above the 2.18 billion seen the day before but still below the June peak of 2.28 billion XRP. According to Santiment data, average realized returns in XRP are now at their lowest point in roughly 12 years, indicating that a substantial number of investors are holding paper losses.
