XRP Network Sees 3-Month Peak in New Wallets, But Bearish Signals Persist
XRP recorded its highest daily wallet growth in three months with 4,941 new addresses added, but bearish derivatives data — including negative funding rates and $1.28M in long liquidations — continues to weigh on any recovery attempts.
XRP has drawn its most significant wave of new user activity in over three months, even as the token continues to hover near a psychologically important support level that has traders watching closely.
On-chain data from Santiment revealed that XRP's network registered 4,941 new wallets within a single 24-hour period — the highest daily network growth figure recorded over the past three months. Alongside this, retail sentiment showed notable improvement, with the positive-to-negative social ratio surging to 3.7:1, a four-month high. These metrics collectively suggest that market participants are treating the $1.00–$1.05 price range as an appealing accumulation window, even amid ongoing price weakness.
That said, analysts caution that a spike in wallet creation signals growing interest rather than confirmed, active buying. Optimism is partly fueled by expectations tied to institutional involvement and ongoing ETF-related narratives, but sustained demand is still needed to back up the renewed enthusiasm on the ground.
Can XRP Hold Above $1.03?
After briefly sliding to nearly $1.01 — a level not seen in 19 months — XRP has managed to hold above the $1.03 mark, with buyers stepping in repeatedly to prevent a confirmed break below the $1.00 psychological threshold. Despite these defensive efforts, the broader market structure remains bearish. XRP continues to trade well beneath the $1.2386 resistance zone and has yet to establish a consistent pattern of higher highs.
At the time of writing, the Relative Strength Index (RSI) sits at 32.76 — still below the neutral 50 mark, though it has bounced off the deeply oversold territory seen earlier in June. The reading confirms that while selling pressure has eased somewhat, bears still have the upper hand in the overall trend. Without reclaiming higher resistance levels, XRP remains exposed to additional downside risk, regardless of the encouraging participation numbers.
Long Liquidations Highlight Market Imbalance
A look at derivatives activity reveals where the real pain has been concentrated. Long liquidations across the latest trading session reached approximately $1.28 million, dwarfing short liquidations that totaled just around $130,770. This stark imbalance makes it clear that leveraged bulls bore the brunt of the market's recent turbulence.
Breaking down the long liquidations by exchange: Binance led with roughly $568,370, followed by Hyperliquid at $454,120 and Bybit at $122,810. These figures underscore the difficulty bullish traders have faced in pushing XRP above nearby resistance. Meanwhile, the comparatively modest short liquidations indicate that bearish traders encountered minimal pressure, even during brief price rebounds from support levels. The overall liquidation dynamic confirms that buyers have not yet managed to reassert meaningful control over the market.
Funding Rates Confirm Bearish Dominance
The OI-Weighted Funding Rate adds another layer to the bearish picture. Standing at approximately -0.0027% at the time of publication, the negative reading signals that short traders are gradually tightening their grip on perpetual futures markets. Negative funding rates generally mean traders are paying a premium to hold short positions — a reflection of stronger demand for bearish exposure.
This trend runs counter to the improving on-chain metrics. Even as fresh wallet creation accelerates and social sentiment rises, derivatives participants continue to bet on further price declines. The divergence between on-chain optimism and derivatives caution suggests that speculative traders remain skeptical about the sustainability of any near-term recovery. Until funding rates flip positive and price action follows suit, bearish positioning is likely to keep capping XRP's upside attempts.
The Bigger Picture
XRP finds itself at a crossroads. On one hand, user growth is accelerating, social sentiment is at a multi-month high, and key support near $1.03 has held despite significant pressure. On the other hand, negative funding rates, a below-neutral RSI, and heavy long liquidations paint a picture of a market that is far from out of the woods.
For XRP to stage a genuine trend reversal, it will need more than new wallets and optimistic social chatter. A meaningful recovery in spot demand and a sustained break above nearby resistance levels are the prerequisites for turning the current cautious optimism into a confirmed bullish shift.
