XRP Remains Above $1 Following Leverage Liquidation Amid Increased Network Activity

XRP has managed to stay above the $1 mark following a substantial liquidation of leveraged positions, which saw open interest drop from approximately $1.3 billion to under $150 million. Despite a general downturn in the crypto market, indicators of network activity and institutional investment have shown positive trends.

Market Activity and Support Levels

The number of daily active addresses for XRP surged by 72% since mid-June, climbing from around 23,000 to nearly 39,500. Additionally, XRP spot ETFs welcomed $15.34 million in inflows on June 29, reflecting persistent institutional interest. Market participants are now watching to see if XRP can maintain support at $1 while attempting to break through resistance levels between $1.0460 and the $1.08 to $1.10 range.

During the latest trading session, XRP experienced a slight dip of 1.05%, fluctuating between $1.0201 and $1.0476 before stabilizing above the critical psychological support level of $1.00. Selling pressure had tested support near $1.0350, but buyers stepped in around the lows, leading to a significant increase in trading volume.

Technical Insights

Despite the overall weak sentiment in the crypto market, XRP's ability to hold the $1.00 level is noteworthy. The reduction in open interest has improved the short-term outlook for XRP, with funding rates now negative and forced liquidations clearing out congested long positions. However, the asset remains below key moving averages, with the 20-day EMA at approximately $1.11 and the 50-day at $1.20.

Traders are advised to monitor the $1.00 support level closely, as a daily close below this could lead to a retest of the $0.90 to $0.85 range. Immediate support is found between $1.0250 and $1.0350, while resistance is capped at $1.0460. A reclaim of the $1.08 to $1.10 level is crucial for a more robust recovery in XRP’s price.