XRP holds near $1.15 as Ripple CEO reveals past liquidation talks

XRP's 8% weekly rebound faces a test after Ripple's chief executive disclosed the company previously explored liquidating its token holdings.

XRP rose 8% to $1.15 over the past seven days, bouncing from $1.03 as trading volumes jumped 62% to $1.8 billion.

"The market is sending mixed signals," CryptoQuant analyst ArabxChain said, noting that the Binance XRP Scarcity Index climbed to 0.77, its highest reading in more than two years, while exchange reserves have dropped roughly 20% since November 2024.

The scarcity index tracks how much XRP is available for sale on Binance relative to historical levels. Binance held about 3.27 billion XRP in November 2024, a figure that has since fallen to roughly 2.6 billion, according to CryptoQuant data. XRP-linked exchange-traded fund inflows dropped 55% to $59 million in June from $132 million in May, showing weaker institutional interest even as prices declined.

The conflicting data leaves XRP at a crossroads. A sustained move above $1.32 — a former support level turned resistance — could open a path to the 200-day exponential moving average at $1.50, representing 33% upside. If the rebound proves to be short-covering rather than organic demand, a retest of the $1.03 low remains possible.

On-chain data from Santiment showed daily active users on the XRP Ledger spiked to their highest level since February, a pattern that preceded a rally from $1.47 to $1.54 earlier this year. Whale-level accumulation at the $1.03 low suggests deep-pocketed buyers viewed the token as undervalued, though it also raises the risk that the move was a whale-driven fakeout rather than organic buying pressure. The Relative Strength Index has risen above the signal line, indicating momentum has shifted from negative to positive, though the oscillator needs to climb above 60 to confirm a trend change.

Derivatives markets tell a similar story. Coinglass data shows XRP's open interest-weighted funding rate turned deeply negative as the price approached $1 in late June, with the most aggressive short positioning hitting between June 26 and 28. That crowding set the stage for a squeeze, and the rebound to $1.13 reads as short covering rather than confirmed spot demand. Funding has turned mildly positive since early July, suggesting a positioning reset without tipping into euphoria. The Binance reserve drawdown accelerated recently, sliding from about 2.8 billion XRP in May to 2.6 billion in early July, the same window in which the scarcity index broke out.

The Ripple CEO's disclosure of past liquidation talks adds uncertainty to the corporate narrative. While the company's legal standing has improved after recent regulatory developments, the revelation raises questions about Ripple's historical financial stability and could weigh on sentiment among institutional investors. The token's ability to hold above $1.15 in the coming sessions will be a key test of whether the rebound has genuine buying support or is merely a technical bounce driven by short covering and whale accumulation.

This article is for informational purposes only and does not constitute investment advice.