[DigitalToday reporter Yoonseo Lee] XRP is drawing market attention for the possibility of a short-term rebound as on-chain activity has clearly increased despite weak prices.

On July 1 (all times local), blockchain outlet The Crypto Basic reported that 4,941 new addresses were added on the XRP Ledger in a single day, marking the strongest user inflow in the past 14 weeks.

XRP fell 22 percent in June. It was the biggest monthly correction since February 2025. Since a peak of $3.66 in July 2025, it has also continued to retest lower price levels.

Network indicators, however, are moving differently. In data compiled by Santiment, social media reactions related to XRP showed 3.7 bullish posts for every 1 bearish post. The ratio of positive to negative reactions was the highest in the past three months. That suggests market participants see the current decline as a buying opportunity.

On-chain activity also supports that trend. The number of daily active addresses on the XRP Ledger has risen 36 percent recently. Some analysts interpret this as whale selling, but on-chain data also suggests it could be attempts to buy at lower prices. With new wallets and bullish sentiment rising at the same time, some see users accumulating assets around the $1 level as an area with favourable risk-reward.

Institutional flows are also relatively supportive of XRP. XRP spot exchange-traded funds recorded net outflows of $2.83 million on June 30, but that was only the second day of net outflows in June. For June as a whole, they posted net inflows of $59.5 million. Over the same period, bitcoin spot ETFs and ether spot ETFs recorded net outflows of $4.51 billion and $529 million, respectively, highlighting a contrast in fund flows. It is read as a signal that funds are moving into XRP funds while bitcoin and ether spot ETFs are weak.

The market is watching whether the on-chain improvement and ETF demand will be reflected in prices. XRP is currently trading below the 20-day exponential moving average of $1.10 and the 50-day exponential moving average of $1.20. If price action builds on network growth and ETF demand, those two levels are seen as key resistance. If it regains those levels, the 100-day and 200-day exponential moving averages of $1.30 and $1.51 are cited as the next targets.

Downside risks also remain. If selling pressure continues to dominate and the $1 support breaks, the $0.80 and $0.62 support levels could emerge as the next downside areas. Still, improving on-chain indicators do not necessarily mean an immediate trend reversal, and a rise in new addresses would need to translate into actual trading demand and sustained buying to underpin a price rebound.

Ultimately, for XRP to break out of a bearish trend, it will need to be confirmed that the increase in network activity is not a one-off inflow and that it links to a recovery of key resistance levels and a rise 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