XRP traded around $1.09 on Wednesday, holding ground after a leverage flush that had pressured prices from last year's highs. The bounce reflects a split signal across the market: derivative positions have collapsed while on-chain activity and institutional inflows accelerated.
Open interest in XRP futures and perpetuals has fallen sharply from 2025 peaks, a sign that overleveraged traders exited or got liquidated. That capitulation often marks a floor, at least temporarily. Meanwhile, the number of active addresses on the Ripple network increased, and XRP ETF inflows picked up, suggesting real use and fresh institutional capital moving in.
The cost of carrying the trade cheapened as positioning unwound. Funding rates on perpetuals swung from extended premiums to neutral or slightly negative, meaning traders paying to hold long bets had less incentive to stay exposed. That reversal can signal a bottom, though it does not guarantee a sustained rebound.
Where technicians watch next: $1.10. Reclaiming that level would clear resistance and reset the chart. Below $1.10, the range widens and uncertainty lingers. Market data showed XRP ranked sixth by market capitalization at the time of publication.
The on-chain improvements hint that XRP has not lost adoption traction. Active addresses matter more than price alone because they show whether the network is actually being used or just speculated on. Combined with ETF inflows, the pattern suggests institutional and retail interest have not fully evaporated despite the drawdown from prior highs.
Leverage unwinding is not a path to new all-time highs. It is a cleanup that removes unstable positions. Once cleared, the market can build on a firmer foundation, though fresh catalysts—regulatory clarity, stablecoin adoption, or new partnerships—would be required for sustained momentum. XRP will need more than a bounce off a blown-out derivatives market to convince holders that a real turn is underway.