Key Takeaways
XRP is attempting to recover after one of its weakest monthly performances of 2026, with technical indicators suggesting that a bullish reversal may be taking shape.
After plunging by more than 22% in June and briefly testing the psychologically important $1 level, the token has stabilized above key support, encouraging traders to look for signs of a broader rebound.
The recovery comes as several bullish factors begin to align. A rounded-bottom pattern has emerged on the four-hour chart, institutional investors continue pouring money into XRP exchange-traded funds (ETFs) despite the recent decline, and on-chain data points to sustained accumulation.
Meanwhile, easing macroeconomic headwinds, including a softer US dollar and falling Treasury yields, are improving risk appetite across cryptocurrency markets.
While XRP still faces important resistance levels before confirming a trend reversal, the technical setup suggests the token could climb toward $1.15 if buyers maintain control over the coming sessions.
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The most closely watched development is the formation of a rounded-bottom reversal on XRP’s four-hour chart. This classic technical pattern typically appears after an extended decline, when selling pressure gradually weakens and buyers begin accumulating at progressively higher prices.
XRP defended the $1.01-$1.06 support zone multiple times during late June, preventing a deeper breakdown despite broad weakness across the crypto market.
Since then, the asset has reclaimed its 20-period exponential moving average and is now testing the 50-period EMA near $1.07, an encouraging sign that short-term momentum is shifting back in favor of bulls.

Momentum indicators reinforce the improving picture. The Relative Strength Index has climbed to around 64, reflecting stronger buying pressure while remaining below overbought territory.
Trading volume has also increased during the latest advance. This trend suggests that the recovery is supported by genuine demand rather than low-liquidity price swings.
The next key technical hurdle lies around $1.10. A decisive four-hour close above that level would likely confirm the rounded-bottom breakout and open the door for a move toward the 200-period EMA near $1.14-$1.15.
However, the bullish structure remains fragile. Losing support around $1.07 could invalidate the breakout attempt and expose XRP to another decline toward the $1.04 support area that formed the base of the reversal pattern.
Despite XRP’s sharp correction during the second quarter, institutional investors have continued accumulating exposure through regulated investment products.
XRP exchange-traded funds have now recorded eight consecutive weeks of net inflows, with cumulative inflows reaching approximately $1.47 billion.
Notably, these purchases continued even as the token experienced one of its steepest monthly declines in recent years, suggesting that professional investors may be viewing current prices as a longer-term buying opportunity.
🐋 WHALE WATCH: Santiment data shows $XRP average trading returns at their lowest point in 12 years. Short term and long term holders are both underwater.
That combination has preceded sharp reversals before.
The more frustrated the crowd the faster the snap back when… pic.twitter.com/HADaIYJt4E
— Whale Factor (@WhaleFactor) July 3, 2026
Although ETF inflows alone have not been large enough to reverse the broader market downtrend, they have helped establish a steady source of demand during periods of heightened volatility.
Blockchain data tells a similar story. Exchange outflows nearly tripled during the final week of June. Outflows rose from roughly 41 million XRP to more than 120 million XRP.
Large outflows generally indicate investors are transferring assets into self-custody instead of preparing to sell them. This is a trend commonly associated with accumulation rather than distribution.
At the same time, XRP’s weekly RSI has fallen into oversold territory not seen since 2022. Historically, similar readings have often preceded multi-week recoveries, although they have not always marked the ultimate market bottom.
Together, ETF demand and on-chain accumulation suggest that selling pressure may be fading beneath the surface even if price action has yet to fully reflect that shift.
XRP’s technical recovery is also benefiting from an improving macroeconomic backdrop.
Expectations that the Federal Reserve could eventually lower interest rates have reduced pressure from both the US dollar and Treasury yields. This helped revive demand for higher-risk assets such as cryptocurrencies.
Lower yields generally make fixed-income investments less attractive, encouraging investors to rotate capital into growth-oriented and speculative markets.
Seasonality may provide an additional tailwind. Historically, July has been XRP‘s strongest calendar month, generating an average return of just over 10%. While historical performance offers no guarantee of future gains, it adds another supportive factor as technical momentum begins improving.
The long US Dollar trade is crowded:
Speculative long positioning in the US Dollar surged to +$34.3 billion as of June 23rd, the highest in 18 months.
This covers hedge funds and asset managers, who take positions based on price trends and macro views rather than to offset… pic.twitter.com/0wchmD8lRb
— The Kobeissi Letter (@KobeissiLetter) July 1, 2026
Still, several risks remain. XRP continues to trade well below longer-term resistance levels established throughout the past year. The token recently faced uncertainty surrounding California’s Digital Financial Assets Law and Ripple’s RLUSD stablecoin operations.
Any renewed regulatory concerns or broader crypto market weakness could quickly derail the current recovery.
For now, however, the focus remains firmly on price action. If XRP successfully clears $1.10, the rounded-bottom breakout could accelerate toward the $1.14-$1.15 region.
Failure to do so would likely keep the token trapped within its broader downtrend. Traders are once again watching the $1.04-$1.02 support zone for signs of renewed buying interest.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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