XRP wallet growth hits 3-month high – Why are bears still in control?

XRP attracted its strongest wave of user participation in more than three months despite trading near a critical psychological support. According to Santiment, the network added 4,941 new wallets in a single day, marking its highest daily network growth during the past three months. 

Retail traders also displayed stronger conviction, with the positive-to-negative social sentiment ratio climbing to 3.7:1, its highest level in four months. Those figures suggested that market participants viewed the $1.00–$1.05 range as an attractive accumulation zone despite recent price weakness. 

However, the surge in wallet creation reflected growing interest rather than confirmed buying activity. Optimism remained supported by expectations surrounding institutional participation and ETF-related narratives. However, the price still required sustained demand to validate the renewed confidence.

Can XRP reclaim strength from $1.03?

XRP continued defending the $1.03 support after briefly dropping to nearly $1.01, its lowest level in 19 months. 

Buyers repeatedly responded around that area, preventing a decisive breakdown below the psychological $1.00 threshold. Even so, the broader structure remained bearish because XRP traded well below the $1.2386 resistance while failing to establish a sequence of higher highs. 

At press time, the Relative Strength Index (RSI) stood at 32.76, remaining below the neutral 50 level despite recovering from deeply oversold conditions earlier in June. The reading indicated that selling pressure had eased slightly but still dominated the broader trend. 

Unless buyers reclaim higher resistance levels, XRP would likely remain vulnerable to additional downside pressure despite the improving participation metrics.

Long liquidations revealed where pressure intensified

Derivatives activity showed that bullish traders absorbed the largest losses during the latest trading session. Total long liquidations reached approximately $1.28 million, while short liquidations totaled about $130,770, highlighting the imbalance between both sides of the market. 

Binance accounted for the largest share of liquidated long positions with roughly $568,370, followed by Hyperliquid at $454,120 and Bybit at $122,810. Those figures indicated that leveraged bulls lost positions as XRP struggled to recover above nearby resistance. 

However, the relatively smaller short liquidations suggested bearish traders faced limited pressure despite the temporary rebound from support. The liquidation imbalance reflected cautious market positioning. Besides, it also confirmed that buyers had not yet regained firm control of the prevailing trend.

Funding rates reflected growing bearish conviction

The OI-Weighted Funding Rate remained negative and stood near -0.0027% as of writing, indicating that short traders gradually regained control across perpetual futures markets. 

Negative funding  generally reflected stronger demand for short exposure because traders paid premiums to maintain bearish positions. The shift aligned with XRP’s inability to reclaim resistance despite improving network activity and rising social optimism. 

Even though fresh wallet creation accelerated and retail sentiment strengthened considerably, derivatives traders continued favoring downside exposure. This divergence suggested that speculative traders remained unconvinced by the recent improvement in on-chain participation. 

Unless Funding Rates return to positive territory alongside stronger price action, bearish positioning would likely continue limiting XRP’s recovery attempts.

To conclude, XRP displayed encouraging growth in user activity and social sentiment, yet derivatives data painted a more cautious picture. Buyers successfully defended the $1.03 support, but negative funding, weak RSI, and dominant long liquidations showed that confidence remained fragile. 

XRP would likely require stronger spot demand and a recovery above nearby resistance before the improving network activity translates into a sustained trend reversal.

Final Summary

• XRP attracted fresh users while bearish derivatives positioning continued, limiting price recovery efforts.
• Buyers defended $1.03 support despite rising long liquidations and negative funding rates.