[Digital Today reporter Yoonseo Lee (이윤서)] An analysis said XRP needs to hold a key support line around $1.07 to climb back above $1.29.

The Crypto Basic, a blockchain outlet, reported on July 9 that XRP has given back part of its recent gains. Even so, it is still maintaining a short-term bullish structure on the four-hour chart.

XRP is trading near $1.09. The pullback is seen as closer to a temporary correction after a strong rebound than the start of a new plunge. The price is staying in the upper half of the volatility band, and the Sharpe Trend Cycle (STC) is still flashing a bullish signal. Momentum has cooled somewhat, but it is too early to view it as a shift to bearishness.

A break above $1.0753 was cited as the point where market direction changed. During the earlier rebound, XRP formed a closing price above this level and maintained the necessary volatility buffer zone. This zone is where an earlier resistance line turned into support. On the chart, a structure of higher highs formed and became the basis for the current uptrend.

XRP also showed several signals of a shift to a bullish structure during the latest recovery phase. That means a move where both highs and lows rose continued after a prolonged period of selling pressure. The view was that as long as this pattern holds, the broader uptrend remains intact.

Moving averages are also pointing in the same direction. The 21-day exponential moving average is near $1.1218 and is acting as support during short-term pullbacks. The 55-day exponential moving average is near $1.0989 and was presented as the market’s key trend support line. Despite the recent decline, XRP remains above both moving averages. It signals that buyers have not yet lost control of the medium-term trend.

The most important price area was singled out as around $1.07. This zone overlaps with $1.0753, the latest structure-shift level. Since it is an area where an earlier resistance line became support, a successful retest could further strengthen the existing trend. If buyers keep defending this area, it would show that demand supporting the recovery remains alive.

The current correction was also interpreted as a relatively controlled move. Rather than collapsing sharply, XRP is retracing above key moving averages. The previous resistance low of $1.0225 has also not been broken for about 27 four-hour candles. This is read as a sign that sellers have not regained meaningful control.

Conditions to confirm another rebound were also presented. If XRP succeeds in retesting the 21-day exponential moving average near $1.1218, or keeps holding four-hour closes above the 55-day exponential moving average at $1.0989, the uptrend could gain strength. Conversely, a decisive four-hour close below the 55-day exponential moving average could break key trend support for the current recovery phase and weaken the bullish scenario.

For upside resistance, the upper volatility band at $1.1503 was mentioned first. A move above this area could open room to test the next resistance at $1.20. If it breaks both levels, it could increase the chances of a return toward around $1.292, where selling pressure previously capped gains. As a result, the defense of $1.07 and whether the 55-period exponential moving average holds have emerged as key variables for the durability of XRP’s rebound in the near term.