XRP is holding near the crucial $1 support as XRP Ledger activity reaches a two-month high. Rising derivatives activity could support a rebound if buyers reclaim $1.02.
XRP$1.00+0.00%XRP is showing mixed signals as its price remains close to the crucial $1 support level while activity on the XRP Ledger has climbed to its highest point in more than two months.
The increase in network participation offers a positive sign after XRP faced renewed selling pressure and retail sentiment weakened. At the same time, derivatives data shows traders remain active, with XRP open interest rising to $2.74 billion.
XRP must now defend $1 and reclaim the $1.02 resistance level if the recent network activity is to translate into a meaningful short-term recovery.
XRP’s price performance has recently been under pressure, but activity on its underlying network has moved in the opposite direction.
According to Santiment data cited in the source material, the XRP Ledger recorded 49,929 active addresses during a 24-hour period. That was the highest level of daily network activity in more than two months.
The increase is notable because XRP Ledger activity had fallen to yearly lows in July. The latest reading therefore represents a significant improvement in network participation.
The stronger activity also contrasts with weakening market sentiment. Retail sentiment toward XRP recently fell to its lowest level in three months as the token struggled to maintain its recovery.
This divergence could be important. Rising network activity does not guarantee a price increase, but it suggests that blockchain participation is improving even while traders remain cautious.
XRP’s derivatives market is also showing signs of increased participation.
Trading volume rose 16.52% to $1.55 billion, pointing to greater short-term activity among traders.
Meanwhile, open interest increased 1.41% to $2.74 billion. Open interest measures the total value of outstanding derivatives positions, so an increase generally indicates that more capital is remaining in active contracts.
The combination of higher volume and rising open interest suggests traders are becoming more active around XRP.
However, these metrics do not indicate whether traders are predominantly bullish or bearish. Higher open interest can accompany either long or short positioning.
For XRP bulls, the key question is whether the increased participation eventually supports a sustained move above nearby resistance.
XRP was trading around $1.002 at the time of the source analysis, leaving the token almost directly on the psychological $1 level.
This price zone has become particularly important after XRP’s prolonged decline from its July highs.
A sustained hold above $1 could give buyers a base from which to attempt another recovery. Losing the level, however, could quickly change the short-term outlook.
The first major resistance sits around $1.02 on the four-hour chart.
XRP previously traded above this area, making it an important level for the current recovery attempt. A four-hour close above $1.02 could strengthen the bullish case and potentially open the way toward $1.05.
XRP’s technical indicators are showing some improvement, although the broader setup remains cautious.
The Relative Strength Index (RSI) is at 41.57. The indicator has moved upward, suggesting momentum is improving, but it remains below the neutral 50 level.
This means buyers have not yet established clear control over the short-term trend.
The MACD also offers an early bullish signal. The MACD line is at approximately -0.0055, while the signal line is around -0.006.
The MACD line has crossed above the signal line, and the histogram has turned slightly positive at approximately 0.0005.
That crossover can indicate improving momentum. However, both MACD lines remain below zero, meaning the recovery signal is still relatively weak.
For XRP, confirmation would likely require the price to move above the $1.02 resistance zone alongside stronger momentum.
The immediate upside level for XRP is $1.02.
The token has faced repeated rejection around this area, making it the first major test for buyers. A decisive four-hour close above $1.02 could increase the probability of a move toward $1.05.
If XRP breaks above $1.05, the next potential targets are:
Both levels previously acted as consolidation areas in July and could become relevant again if momentum strengthens.
However, XRP must first clear $1.02 before those higher levels become realistic short-term targets.
The bearish scenario begins with a sustained break below the $1 support.
A move under this psychological level could expose XRP to $0.98, which becomes the next important downside area.
If $0.98 also fails to hold, the price could potentially move toward the $0.95 support.
That would weaken the current recovery setup and suggest that sellers remain in control.
The $1 level is therefore more than a round-number support. Holding it would keep the possibility of a short-term rebound alive, while losing it could create additional downside pressure.
XRP is currently caught between improving network activity and a fragile price structure.
The XRP Ledger’s 49,929 active addresses represent the strongest daily network activity in more than two months, while derivatives volume and open interest have also increased. These developments suggest that participation around XRP is recovering even as market sentiment remains weak.
Price action, however, still needs confirmation.
XRP must defend $1 and reclaim $1.02 to strengthen the bullish case. A move above $1.05 could then put $1.08 and $1.10 into focus.
On the other hand, a sustained break below $1 could expose XRP to $0.98 and potentially $0.95.
For now, $1 remains the key level to watch. Strong network activity is encouraging, but XRP needs buyers to translate that activity into sustained demand before a larger recovery can take shape.
JPMorgan has returned to XRP ETF exposure while sharply increasing its holdings of BlackRock’s Bitcoin and Ethereum ETFs, according to its latest SEC filing.
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