XRP open interest has topped $2.4 billion, rising by about $125 million over the past week.

On July 21, blockchain media outlet CryptoSlate reported that XRP is entering the next phase of price movement as derivatives positions build again ahead of the $1.18 resistance level.

XRP was trading around $1.14, up 1.5 percent over 48 hours. CoinGlass data showed futures trading volume of $1.98 billion and spot trading volume of $274 million, with $2.53 million in liquidations. Total exchange turnover tracked by CoinGecko was $1.12 billion, up 63.5 percent in a day.

The price level in focus is $1.18. About 5.5 percent above the current price, the zone was presented as a dividing line for whether this rebound is a simple recovery or leads to further gains. A recent technical assessment also said XRP needs to close above $1.18 on the daily chart for a path to open toward the 50-day exponential moving average and the $1.26 zone.

This rebound appears to be driven more strongly by the derivatives market than spot trading. Over the past 24 hours, futures volume was estimated at 7.2 times spot volume, and given the limited scale of liquidations, many of the accumulated positions have yet to undergo a clear directional move.

A market snapshot showed the funding rate at 0.0066 percent, forming a structure in which long position holders pay costs to short position holders. The figure is lower than levels that often appear ahead of large-scale liquidations of margin positions, which is read as a sign of a long bias but too early to see overheating.

Inflow of funds within the regulatory framework was also cited as a supporting indicator in the rebound. Spot XRP exchange-traded funds recorded $6.78 million of net inflows on July 16, and the products' net assets were close to $1 billion. Cumulative inflows were around $1.5 billion. Still, the day's inflows were less than 1 percent of XRP's recent daily spot turnover, leading to an assessment that they are closer to auxiliary support than a key driver moving the broader spot market.

Key points to watch are a break above $1.18 and whether XRP falls below $1.08. If XRP closes above $1.18 and daily turnover holds around $1 billion, the $1.26 zone could be the next target. If it is pushed back in the $1.14 to $1.18 range and loses support at $1.08 to $1.10, a reduction of positions built during the rebound could accelerate. After that, $1 remains the last nearby defense line.

XRP is currently carrying rising turnover, a gradual tilt toward long positions, limited liquidations and open interest that is $125 million higher than on July 14. In the coming days, a key variable will be whether demand reaches resistance first or whether the burden from derivatives positions grows first.