[Digital Today reporter Yoonseo Lee] XRP has entered a turning-point zone where technical rebound signals are confronting selling pressure from large holders.

On July 1 (local time), blockchain outlet The Crypto Basic reported that XRP is showing mixed signals on the daily chart and in on-chain indicators, raising the possibility of higher short-term volatility.

The price level currently drawing market attention is $1.06. Glassnode, based on UTXO realised price distribution data, pointed to this area as XRP's most important support level. More than 830 million XRP previously traded at this price, meaning buying interest is likely to step in to defend it.

On technicals alone, expectations for a short-term rebound remain. XRP recently formed a '9' candle on the daily chart, a Tom DeMark Sequential buy signal. This pattern has typically appeared ahead of a relief rally lasting about 1 to 4 days after strong selling pressure. Over the past 3 sessions, a 'Morningstar Doji' pattern has also formed, suggesting weakening downward momentum and the potential formation of a local bottom.

A rebound target zone was also presented if buying volume picks up. If XRP holds above $1.06, the recent buy signal could be confirmed, and a rebound to $1.27 has been discussed. The possibility of a rise toward around $1.35 also remains open.

On-chain activity showed improvement. Santiment data showed the number of daily active addresses for XRP rose from about 23,000 on June 14 to about 40,000 on June 28. That is an increase of about 50 percent. With more addresses using the XRP Ledger, network activity itself is seen as expanding.

Still, it is difficult to interpret the indicator as a direct expansion in buying. Santiment tallied that whales sold more than 30 million XRP over 5 days as of June 19. Santiment viewed the recent rise in active addresses as possibly reflecting, in part, whales moving to exchanges rather than an influx of retail investors. While a rise in active addresses can signal improving network health, if it also means higher exchange inflows it could weigh on prices.

The price structure is also still a cautious zone. XRP recently hit the upper resistance line of its trading channel and then began slipping toward the middle of the channel. This area overlaps with a support zone between $0.70 and $0.80. With XRP currently above $1.05, below $1.06, market focus quickly shifted to lower price levels.

The downside scenario is also clear. The next major support levels were presented as $0.80, $0.62 and $0.51. All are price levels where large volumes traded in the past.

Ultimately, the short-term direction is expected to depend on whether technical rebound signals gain traction first or whether whale selling offsets them. XRP has seen rising network activity and buy signals at the same time, but it also faces the burden of selling by large holders and a test of a key support level. For now, the market is expected to gauge XRP's next direction mainly by whether it recovers $1.06 and by changes in trading volume.

✍️ TL;DR: XRP’s massive new wallet creations & FOMO emerge in midst of price threatening to drop below $1 Metrics used: Network Growth, Pos/Neg Social Ratio Link to chart: https://t.co/0WJTZI6VSS $XRP is still hanging on to the $1.00 support zone, trading around ~$1.04… pic.twitter.com/41bd8NqCQJ