Traders poured back into XRP this week, sending daily volumes up 62% to a massive $1.8 billion. That sudden burst of liquidity helped the token defend a $1.03 price floor and stage an 8% comeback. By pushing past $1.15, XRP managed to undo a months-long headache, finally reclaiming a vital safety net it lost all the way back in June.
Even with institutional ETF buying drying up in June, exchanges saw their available token supply continue to plummet. On-chain metrics painted a similar story of behind-the-scenes momentum, showing a steady rise in actual network usage despite the institutional cooldown.
The latest rebound followed a difficult June for XRP holders. The token retreated from levels above $1.55 in February before reaching a low between $1.00 and $1.04 by late June. That decline marked the largest holder drawdown in more than ten years.
Meanwhile, institutional demand weakened during the same period. Net inflows into XRP-linked spot exchange-traded funds dropped from $132 million in May to $59 million in June, representing a 55% monthly decline despite lower prices.
Even so, blockchain data presented a different trend. Santiment reported that daily active addresses on the XRP Ledger climbed to their highest level since February, when XRP traded between $1.47 and $1.54.
At the same time, CryptoQuant researcher ArabxChain reported that the XRP Binance Scarcity Index climbed to 0.77, reaching its highest reading in more than two years. The metric measures XRP availability on Binance against historical levels.
Binance's XRP reserves have fallen by about 20% since November 2024, declining from roughly 3.27 billion tokens to nearly 2.6 billion. Exchange holdings also slipped from about 2.8 billion in May to 2.6 billion in early July.
Besides lower exchange balances, ChartNerd identified what was described on X as XRP's "3rd Retest." The analyst referred to the pattern as a favorable entry area for traders building positions through technical analysis.
Futures market data from Coinglass showed funding rates turned deeply negative between June 26 and June 28 as XRP reached its recent low. That positioning created favorable conditions for a short squeeze.
Afterward, XRP climbed toward $1.13 as funding rates returned to slightly positive territory, suggesting futures positioning had become more balanced following the earlier decline.
Looking ahead, immediate resistance stands near $1.20 after limiting the mid-June recovery attempt. A daily close above that level would expose the $1.35 to $1.40 range, representing roughly 22% upside from current prices.
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Furthermore, the daily Relative Strength Index remained near 55, indicating room before reaching overbought conditions. The 200-day Exponential Moving Average stands near $1.50, while a move below $1.00 would invalidate the current recovery structure.
Finally, XRP trading volume recently surpassed Bitcoin on South Korean exchange Upbit, adding another market data point as participants continue monitoring whether stronger demand continues to develop.
XRP recovered above $1.15 after finding support near $1.03 as trading volume increased and XRP Ledger activity strengthened. Meanwhile, Binance's declining XRP reserves and improving futures positioning reflected changing market conditions. Investors will likely watch whether XRP can break above the $1.20 resistance level.