TLDR
XRP (XRP) is trading just above the key $1 support after a sharp drawdown, with price now consolidating rather than trending.
- XRP is hovering near $1.04, repeatedly testing the $1 support while staying capped by resistance around $1.10$1.20.
- Derivatives leverage in XRP has largely cleared, with open interest at its lowest since mid-2025 and funding turning negative, reducing crowded long risk.
- On-chain activity and spot ETF inflows are rising as price stalls, making the $1 zone a pivotal area to watch for either accumulation or a breakdown.
Deep Dive
1. Price At Key Support
Recent reports show XRP trading in a tight band around $1.03$1.06, defending the $1.00 level after roughly a 2025% monthly decline and a larger year-to-date slide. Articles describe repeated retests of $1 over the past two weeks without a clean move above nearby resistance near $1.10$1.12, and larger barriers around $1.20$1.31, which aligns with where major moving averages cluster.
This leaves XRP in a range: $1.00 is the primary support that bulls are defending, while $1.10$1.20 act as resistance that would need to be reclaimed to signal a more convincing recovery, according to analyses such as this market note.
2. Leverage Reset And Risk
Several derivatives-focused pieces highlight that XRP futures and perpetual open interest have fallen sharply from a peak near 1.3 billion XRP to below 150 million, the lowest since July 2025, with funding rates flipping negative as crowded long positions were unwound. That leverage flush reduces the risk of cascading long liquidations but also means fewer leveraged buyers to drive sudden upside moves, as noted in coverage like this analysis.
At the broader market level, overall crypto derivatives open interest has risen modestly over the past week, while a recent session saw around $200 million in liquidations skewed toward shorts, contributing to altcoin-specific squeezes in names like SOL, with XRP comparatively flat in that move, according to this leverage recap.
XRPs setup is cleaner (less crowded leverage) but still fragile, so moves away from $1 are more likely to be driven by new spot demand than by forced derivatives flows.
3. On-Chain And ETF Signals
On-chain data cited across multiple reports show daily active addresses on the XRP Ledger jumping roughly 72% in two weeks, from about 23,000 to nearly 39,500, alongside a spike of 4,941 new wallets in a day, the strongest network growth in over three months, as detailed in this on-chain overview. Social sentiment has turned notably bullish, with several sources mentioning roughly 3.7 positive comments per bearish one.
At the same time, U.S. spot XRP ETFs have logged eight consecutive weeks of net inflows totaling about $144.7 million, even as Bitcoin and Ethereum ETFs saw substantial outflows, suggesting some institutional allocators are using the pullback to accumulate via regulated products, according to this fund-flow summary. Analysts caution, though, that higher wallet counts and inflows must translate into sustained spot buying at key levels to turn the price trend.
Confidence: high multiple independent news, derivatives, and on-chain sources report the same support zone, leverage reset, and activity patterns for XRP.
Conclusion
XRP is in a classic inflection zone: price is compressing near $1, leverage has been cleaned out, and underlying network and ETF signals look stronger than the chart.
If spot demand continues to build and $1 holds, the current consolidation could become a base for reclaiming resistance above $1.10. If $1 fails, however, the same cleaned-up leverage means downside moves would likely be driven by genuine selling rather than forced liquidations, so watching spot volume and on-chain activity around this level is critical.
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