XRP is showing a divergence between network activity and price performance. XRP active addresses increased by 84.18% from 23,642 on August 1 to 43,543, according to data shared by Ali Charts.
The increase came while XRP remained about 71.7% below its July 2025 all-time high of $3.66 and traded close to the $1 level. The combination of heavier network activity, large-holder accumulation and changing derivatives positioning has placed the $1-$1.06 range at the center of the latest market setup.
The increase in active addresses accelerated during August. Network activity moved from roughly 24,000 to 35,000 before exceeding 40,000. It then fell to about 32,000 around August 8, then recovered and reached approximately 44,000 by August 11.
The price action has moved in the opposite direction. XRP recently traded around $1 after declining from higher levels.
On the monthly chart, the Tom DeMark Sequential produced a buy signal. Previous signals cited in the analysis were followed by rallies of 1,074.74% in 2020 and 972.61% in 2022, while a 2025 sell signal preceded a 57.20% decline.
The divergence in network activity comes as derivatives positioning adds another layer to the setup.
However, a break below $1 could increase liquidation pressure on leveraged long positions, particularly while funding remains positive. The $1 level therefore remains key for determining whether existing long exposure supports a rebound or becomes vulnerable to further liquidations.
In addition to CoinGlass data, XRP funding rates have remained predominantly positive since late June, indicating that long positions have generally outweighed short positions in perpetual futures markets.
Positive funding spikes appeared strong between July 10 and July 22, followed by another continuous increase from late July into August. This positioning has persisted even as XRP weakened from above $1.20 in mid-June to around $0.90 by August 12, creating a divergence between price and derivatives positioning.
Technical indicators remain weak despite increased network activity. XRP’s 14-day RSI stood at 35.97, below its 39.95 moving average and the neutral 50 level. The reading remained above the normal 30 oversold mark.
(adsbygoogle = window.adsbygoogle || []).push({});The MACD also remained negative. The MACD line stood at -0.0237 against a signal line of -0.0191, while the histogram was -0.0046. Together, the readings show that bearish momentum had not yet produced a confirmed technical reversal.
The immediate level is $1. Holding it could allow XRP to test $1.06, where Ali Charts said nearly 3 billion XRP had been transacted. A monthly close above $1.06 would put $1.35 and $1.64 on watch.
The first scenario involves XRP trading at $1 and then reclaiming $1.06. Such a move would provide price confirmation alongside the increase in network activity. The second scenario includes a break below $1, which could lead the token to about $0.98 and $0.93, based on the liquidity areas.
For positioning, traders can leverage the $1-$1.06 range to identify risk rather than assume that rising activity guarantees a rally. However, a DCA approach could be set up around specific support zones such as $1, $0.98, and $0.93, while an invalidation level should be set below the trader’s selected support before entering.
The key point is the divergence. XRP remains more than 70% below its all-time high, but active addresses are rising sharply and large holders are accumulating. This suggests network activity is improving even while price remains weak.
That does not confirm a reversal by itself, but it gives traders a reason to watch the $1–$1.06 range closely. When rising on-chain activity combines with growing open interest and liquidation pools near $1, the setup can act as a catalyst in either direction. A reclaim of $1.06 could support a recovery attempt, while a clean break below $1 could trigger more downside pressure.
