XRP Faces Make-or-Break Moment as Bullish Signals Clash With Whale Selling

XRP is approaching a critical turning point as technical indicators and on-chain data send mixed signals. 

Several chart patterns suggest a short-term rebound may be forming. However, continued whale selling and a key support test indicate volatility could remain high in the days ahead.

Technical Indicators Suggest a Short-Term Rebound

XRP has flashed two bullish signals on the daily chart. The first is the Tom DeMark Sequential buy signal, which has printed a “9” candlestick. Historically, this pattern has preceded one to four days of relief rallies after extended selling pressure.

XRP has also formed a Morning Star Doji pattern over the past three daily sessions. This candlestick formation is a sign that bearish momentum is fading and a local bottom may be developing.

If buying volume strengthens, XRP could rebound toward $1.27. A move to around $1.35 is also possible.

Rising Network Activity Supports the Bullish Case

On-chain data from Santiment also points to improving network activity. Daily active XRP addresses have increased sharply over the past two weeks. The number rose from about 23,000 on June 14 to nearly 40,000 by June 28. That represents an increase of roughly 50%.

Notably, the rise suggests more users are interacting with the XRP Ledger. Higher address activity is a sign of improving network health and can sometimes precede stronger trading interest.

Whale Selling Remains a Headwind

Despite the increase in network activity, large XRP holders continue to reduce their positions. Santiment reported on June 19 that whales sold more than 30 million XRP over a five-day period. 

The firm suggested the recent rise in active addresses may partly reflect whales moving tokens to exchanges rather than broad retail participation. If whale selling continues, it could offset the bullish technical signals and keep pressure on the price.

$1.06 Becomes the Key Level to Watch

On-chain data from Glassnode identifies $1.06 as XRP’s most important support level. According to the firm’s UTXO Realized Price Distribution (URPD) data, more than 830 million XRP previously changed hands at this price. That makes it a significant area where buyers may try to defend the market.

If XRP stays above $1.06, the recent buy signals could gain confirmation. That could open the door to a move toward $1.27 and possibly $1.35.

However, a daily close below $1.06 could trigger a deeper correction. The next major support levels are around $0.80, $0.62, and $0.51, where large amounts of XRP were previously traded.

Channel Resistance Keeps Bears in Play

The broader technical picture remains cautious. XRP recently hit resistance at the upper boundary of its trading channel. It has since started moving back toward the middle of the channel.

That area overlaps with the $0.70-$0.80 support zone, making it another important level if $1.06 fails to hold.