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XRP’s (XRP) price pulled back by more than 3% over the past 24 hours after an impressive recovery that saw the token gain nearly 9% over the previous week. The decline comes despite a sharp increase in leveraged long positions, suggesting traders remain optimistic that Ripple’s token can extend its rebound.
The latest correction appears to be driven more by technical factors than a shift in market fundamentals. XRP has rallied from June lows near $1.03 to test the important $1.18-$1.20 resistance zone, where profit-taking and weakening buying momentum have temporarily stalled the advance.
With exchange-traded fund (ETF) inflows remaining positive and regulatory optimism surrounding the CLARITY Act still supporting sentiment, the coming days could determine whether XRP is preparing for a larger breakout or simply another rejection within its broader downtrend.
One of the most notable developments has been the sharp rise in XRP/USD long positions on Bitfinex. Leveraged bullish bets jumped more than 3% in a single day, prompting several market analysts to describe trader positioning as increasingly aggressive.
Normally, rising long exposure signals growing confidence that prices will continue to rise. However, it also raises the risk of long liquidations if resistance proves too strong.
WARNING TO $XRP HOLDERS! $XRP LONGS ARE GOING ABSOLUTELY PARABOLIC. pic.twitter.com/xrOf4JwBOv
— Crypto Rover (@cryptorover) July 4, 2026
That appears to be exactly what XRP is facing. After climbing by roughly 13% during the first few days of July and reaching around $1.18, the token was rejected near the $1.18-$1.20 resistance area before retreating toward $1.14.
Momentum indicators suggest the rally had become stretched. The seven-day relative strength index (RSI) climbed above 70, entering overbought territory, while trading volume dropped more than 35% over the past day. Falling volume during a pullback often reflects fading buying pressure rather than aggressive selling, but it also makes a breakout more difficult.
For now, the surge in long positions represents both confidence and risk. If XRP cannot push above resistance, leveraged traders could face a wave of liquidations that accelerates downside volatility.
From a technical perspective, XRP has improved considerably after defending the crucial $1.02-$1.06 support zone in late June.
The bullish RSI divergence that developed near those lows played out as expected, with momentum strengthening as sellers lost control. On the daily time frame, XRP reclaimed previous support and pushed back above the RSI midpoint, signaling improving market strength.
However, the broader chart still tells a cautious story.
XRP continues to trade inside a long-term descending channel and remains below major moving averages (MAs). The recovery has now reached the first significant supply zone between $1.17 and $1.24, an area that previously acted as support before turning into resistance.
On the four-hour chart, XRP is also testing a descending trendline that has capped every rally since mid-June.
A decisive close above $1.20 would invalidate part of that bearish structure and could open the door toward $1.25 and potentially $1.30. Conversely, another rejection could send XRP back toward immediate support around $1.10, with the critical demand zone remaining between $1.02 and $1.06.
Despite the short-term weakness, several fundamental catalysts continue to favor XRP over the medium term.
Investor demand has remained healthy through XRP investment products, with funds recently recording fresh daily inflows and cumulative inflows approaching $1.5 billion.
Positive flows into spot ETFs have also helped improve sentiment across the broader cryptocurrency market.
Meanwhile, optimism surrounding the CLARITY Act continues to support Ripple’s regulatory outlook. The proposed legislation could provide greater legal certainty for digital assets in the US, reducing one of the biggest risks that has weighed on XRP for years.
Historically, July has also been one of XRP’s strongest months, with average gains exceeding 10% since 2013.
JUST IN: CLARITY Act still alive but timeline tightening, Senate targets action before Aug 7 recess.
Staffers reconciling Senate Ag and Banking Committee versions behind the scenes. Ethics provision on Trump/officials profiting from crypto remains the key sticking point before a… https://t.co/itde6c4gDL pic.twitter.com/wyhaDTUAZn
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) July 6, 2026
That combination of improving fundamentals and recovering technical momentum explains why leveraged traders continue building long positions despite the latest pullback. However, unless buyers can overcome the stubborn $1.20 resistance zone, XRP may remain trapped in a consolidation range before its next major move.
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