XRP Battles $1 Support Amid Leverage Shakeout and Network Revival
By John Nada·Jul 1, 2026·3 min read
XRP holds firm at $1 after a leverage purge, with network activity up 72%. Eyes on $1.08 resistance.
XRP clings to the $1 mark, fresh off a leveraged sell-off that saw open interest plummet from $1.3 billion to under $150 million, as reported by CoinDesk. This dramatic reduction in open interest highlights a significant shift in market dynamics, as the collapse of leveraged positions has cleared the trading field of excessive speculation. The network's recent revival is noteworthy; daily active addresses surged about 72% since mid-June, jumping from 23,000 to nearly 39,500 by June 27. This substantial increase in active addresses indicates a growing interest in XRP transactions, which could be a positive sign for its long-term adoption and utility.
As traders eye the $1 support and test resistance zones between $1.0250 and $1.0350, they keep an eye on the broader $1.0460 and $1.08-$1.10 resistance areas. The token showed resilience, rebounding from a 1% dip during the session, bouncing back as open interest dwindled and long positions were purged. This bounce highlights the presence of active buyers willing to step in at lower levels, providing short-term support.
The leverage reset might breathe new life into the short-term outlook. After open interest collapsed and funding rates turned negative, forced liquidations wiped out crowded longs, suggesting a cleaner slate. Such a reset often results in a more balanced market, where price movements are less influenced by speculative excess and more aligned with fundamental factors.
However, XRP hasn't yet broken above significant moving averages, with the 20-day EMA near $1.11 and the 200-day looming at $1.52. These moving averages represent key resistance levels that need to be breached for a more sustained upward movement. Without doing so, XRP might struggle to gain the momentum needed for a bullish breakout.
A major pressure point remains the $1 support level, a pivotal battleground. CoinDesk reported volume spikes as buyers took advantage of the lows, but XRP's momentum still lags, with the 14-day RSI only around 33. This RSI level indicates that while selling pressure has eased, the momentum remains weak, requiring further bullish efforts for a meaningful recovery.
Buyers stepping in at $1.02 offers some optimism, but the challenge is clear: reclaim higher ground or risk drifting below key support. Watch for $1.00; a slip here could turn focus to $0.90-$0.85, leaving traders on edge. This potential downside makes the $1 mark a critical psychological and technical level for market participants.
The broader market context remains crucial. Despite the challenges, XRP's network fundamentals are improving, with a significant rise in daily active addresses suggesting increased engagement and potential for future growth. Moreover, the ETF inflows indicate a degree of confidence among institutional investors, which could provide a buffer against further declines.
Meanwhile, technical indicators paint a mixed picture. The narrowing Bollinger Bands following June's selloff suggest reduced volatility, yet XRP needs to reclaim the middle band near $1.12 to demonstrate a stronger recovery. Furthermore, the 50-day and 100-day moving averages at approximately $1.20 and $1.31 respectively, serve as additional hurdles that XRP must overcome to establish a bullish trend.
Traders should remain vigilant, as the $1.00 support level continues to be a decisive factor. A daily close below this level could increase bearish pressure, making $0.90-$0.85 the next target range. Conversely, overcoming resistance at $1.0460 and subsequently $1.08-$1.10 would be necessary steps for considering a stronger recovery.