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▲ XRP
XRP recorded a 3-month high in network activity after enduring the leverage liquidation shock. With the $1 support level held, market attention is shifting to whether it can recover $1.1.
According to crypto media outlet Bitcoinist on July 1 (local time), XRP's active addresses and new wallet creation rate recently reached a 3-month high. This change occurred immediately after excessive leveraged positions were cleared in the derivatives market. XRP maintained the psychologically critical $1 mark, leaving open the possibility of 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 somewhat eased technical bearish sentiment.
On-chain indicators provided further grounds for bullish investors. The increase in active addresses and wallet creation shows that XRP Ledger users are still interacting with the network. A 3-month high can be interpreted as a clear increase in activity rather than just temporary noise.
However, an increase in active addresses should be interpreted cautiously. One user can hold multiple wallets, and exchanges or automated trading programs can also create a surge in activity. The persuasiveness of network metrics is confirmed by their persistence rather than a one-time surge.
The key turning point in the short-term chart is $1.1. If XRP recovers this level, it strengthens the interpretation that market restructuring after leverage liquidation led to an improvement in price structure. Conversely, if it is capped below $1.1, the possibility of retesting support remains. Currently, XRP has secured positive factors such as 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 hit a 3-month high after leverage liquidation.
-XRP maintained the $1 support level even during the liquidation of open interest in derivatives.
-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.*
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