XRP, Network Activity Hits 3-Month High...Is Leverage Liquidation Shock Over?

▲ XRP

After enduring the leverage liquidation shock, XRP's network activity has reached a 3-month high. With the $1 support level maintained, market attention is shifting to whether it can recover $1.1.

According to crypto news outlet Bitcoinist on July 1 (local time), XRP's active addresses and new wallet creation rates have reached a 3-month high. This change appeared immediately after excessive leveraged positions were cleared in the derivatives market. XRP maintained the psychologically critical $1 level, leaving room for a short-term recovery.

Leverage liquidation is accompanied by forced liquidations and increased volatility in the short term. However, as overheated speculative positions decrease, the market structure can become lighter. The fact that XRP did not lose the $1 support level during this process is a factor that has somewhat eased technical bearish sentiment.

On-chain metrics provided further grounds for bulls. The increase in active addresses and wallet creation shows that XRP Ledger users are still interacting with the network. A 3-month high could be interpreted as a clear increase in activity rather than mere temporary noise.

However, the increase in active addresses should be interpreted cautiously. One user can hold multiple wallets, and exchanges or automated trading programs can also generate a surge in activity. The persuasiveness of network metrics is confirmed by their persistence rather than a one-off surge.

The key turning point in the short-term chart is $1.1. If XRP recovers this level, it strengthens the interpretation that the market restructuring after leverage liquidation led to an improvement in the price structure. Conversely, if it is blocked below $1.1, the possibility of retesting the support level remains. Currently, XRP has secured positive material in the form of improved network activity, but it is a phase that requires confirmation signals from the price chart.

[Article Key Summary]

-XRP active addresses and new wallet creation rates reached a 3-month high after leverage liquidation.

-XRP maintained the $1 support level even during the liquidation of derivatives open interest.

-The recovery of $1.1 remains a key variable for confirming a short-term bullish structure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*