XRP has rebounded from its July 1 low and was trading at $1.14, up more than 8% in four days. After weeks of fear, ETF outflows, cautious institutional positioning, and weak sentiment across crypto, buying interest started to return near important support levels. Santiment said several major assets found buyers on the same trading day, and XRP was part of that bounce.
XRP breaks out after holding the $1.00 area
For several days, XRP was stuck between $1.00 and $1.07 before pushing higher. Santiment said both short-term and long-term average returns for XRP had fallen to historic lows, pointing to an extreme fear environment. That setup often means many holders are deeply underwater, selling pressure starts to cool, and a relief move becomes possible. The sequence was clear: heavy losses first, buyers after.
Both 30-day and 365-day MVRV stayed deeply negative
On-chain profitability data helped explain the rebound. XRP’s 30-day MVRV was around -45%, while its 365-day MVRV was near -47%. In practical terms, the average cost basis for both short-term and long-term holders remained above the market price. Santiment added that across more than 12 years of trading history, average returns over these periods had never dropped this low for XRP. The recent move higher was framed as a relief rally following unusually deep losses.
Short-term XRP/BTC structure turns stronger
Relative strength versus Bitcoin also improved. On the two-hour XRP/BTC chart, the 50-period moving average crossed above the 200-period moving average, creating a short-term golden cross. After falling to a 19-month low of $1.01 on June 25, XRP still managed to hold the broader $1.00 range, which matched the idea that momentum was recovering. By mid-July, XRP had reversed the decline it had been showing against Bitcoin since mid-June, though the price staying close to $1.00 meant this was not yet a broad breakout.
Wallet growth on XRP Ledger jumps even with soft price action
Network activity told a different story from price. The XRP Ledger recorded 4,941 new wallets in a single day, the biggest jump in network growth in more than three months. Price action remained soft, but user inflows continued, showing that interest in the ecosystem had not faded. The report said the $1.00 to $1.05 range was being watched as a possible buy-on-pullback zone, while overall sentiment reflected the highest level of fear of missing out seen in the past three months.