XRP remains under pressure near the $1.10 level, as market activity slows and fundamental indicators show declining momentum. Following an extended downtrend, XRP continues to trade within a descending channel, signaling persistent selling interest across the market.
Declining On-Chain Activity
Recent data from Glassnode, a leading blockchain analytics provider, shows active addresses on the XRP Ledger have dropped to approximately 20,000. This marks the lowest figure observed in nearly a year. The active address metric represents the number of unique users transacting on the network, and significant decreases typically suggest a retreat in user engagement and overall network activity.
This reduction in user participation coincides with lower trading volumes on major exchanges. The combination points to diminishing market involvement, creating additional obstacles for potential sustained price growth unless new capital and participants enter the ecosystem.
Mini dictionary: Glassnode is a blockchain data and intelligence platform that provides on-chain metrics and analytics for cryptocurrencies, widely used by traders and institutions to assess network activity and market sentiment.
Neutral Derivatives Positioning
PelinayPA, a market analyst, noted that XRP’s funding rates in perpetual futures contracts are hovering close to neutral. Liquidations are distributed relatively evenly between long and short positions, indicating neither bulls nor bears are currently in clear control.
Funding rates stand at neutral and both long and short liquidations are balanced, suggesting a lack of directional momentum in the current market structure.
This balanced positioning reduces the likelihood of dramatic price movements triggered by a cascade of liquidations. Such sharp moves often occur when the market is heavily skewed in one direction, but that scenario is not apparent at present.
Analysis by CoinGlass indicates cumulative short leverage of $102.2 million extends up to $1.202, with long leverage totaling $61.17 million down to $1.02. This suggests price action could range toward the significant liquidity around $1.20 before a clearer trend develops.
| Position Type | Cumulative Leverage | Price Range |
|---|---|---|
| Short | $102.2 million | Up to $1.202 |
| Long | $61.17 million | Down to $1.02 |
According to AMBCrypto, substantial XRP holders accumulated about 70 million tokens around July 16. On Binance, one of the world’s largest cryptocurrency exchanges, high-volume traders held a strong long bias with a 3.44 long-to-short ratio. Despite this accumulation, sellers have repeatedly defended the $1.20 level, preventing further price advances.
Key Technical Levels and Outlook
Technical indicators highlight persistent weakness. The Chaikin Money Flow, a popular volume-based metric, currently stands at -0.13, reflecting sustained net capital outflows from the asset across exchanges.
Technical analyst Ali Charts has identified $1.13 as the immediate level to watch for momentum shifts. A clear move above this price could signal the start of a renewed bullish phase for XRP.
Ali Charts views $1.13 as the key resistance: A decisive breakout above this level may confirm an upward trend and allow further gains in XRP.
Recent analysis of the 4-hour chart suggests XRP has broken out from a descending wedge pattern. However, the resistance zone spanning $1.18 to $1.23 continues to limit upward moves. Bulls are expected to need a 4-hour close above $1.29 to confirm strength and trigger a more robust rally.
If XRP fails to maintain support at the psychologically important $1 level, lower support areas would likely come into play. On the upside, a confirmed breakout could see prices targeting the 0.382 Fibonacci retracement, which lies at $1.64.
