XRP returned to market focus after activity on Binance fell sharply, with 30-day deposits and withdrawals declining from roughly 650,000 in June to 350,000 at the time of writing. The slowdown resembled conditions seen before XRP’s October 2025 rally, leading to renewed speculation about whether the market was entering another accumulation phase.

Lower exchange transaction activity can indicate reduced near-term selling pressure, as fewer coins are moving through trading venues. However, weaker exchange flows do not by themselves confirm a bullish outcome, especially when broader network participation is also cooling. Because Binance is one of the largest crypto trading venues, changes in deposits and withdrawals there can influence short-term sentiment, but they still represent only one part of XRP’s broader market activity.

The latest drop suggested that investors were more inclined to hold positions than actively move funds. For that reason, exchange flow remained a closely watched metric, as it showed how market participants were positioning ahead of XRP’s next major price move.

Is XRP’s valuation moving ahead of usage?

Network valuation also drew attention after the NVT Ratio rose 144.21% over the past day to 697.6. The sharp increase indicated that XRP’s market capitalization grew much faster than its on-chain transaction volume.

That kind of divergence is often associated with stronger investor confidence, but it can also raise questions about whether price gains are moving ahead of actual network usage. NVT is commonly used to compare a network’s market value with the value moving across its blockchain, so sharp increases can become important when traders are trying to separate holding-driven price strength from usage-backed demand.

The elevated NVT reading aligned with the decline in Binance activity, as both indicators pointed to fewer coins circulating and stronger holding behavior. Still, for price appreciation to remain sustainable, transaction activity would likely need to recover alongside valuation.

Without such a recovery, the widening gap between price and network utility could prompt traders to reassess whether XRP was still fairly valued.

Positive funding rates show traders remain engaged

Derivatives traders continued to show a constructive stance, with Funding Rates rising 52.16% over the previous 24 hours to 0.008685 at the time of writing. The positive rate showed that long-position holders were still paying a premium to maintain bullish exposure.

This activity suggested steady confidence even as XRP remained confined to a relatively narrow trading range. Unlike sharp funding spikes that can accompany overheated markets, the current level stayed positive without pointing to excessive leverage. Funding rates are especially useful in range-bound markets because they show whether leveraged traders are paying to stay long or short while spot prices remain compressed.

That balance indicated that bullish conviction remained in place while speculative positioning stayed relatively controlled. Although funding rates alone cannot determine price direction, the metric supported the broader picture of declining exchange activity and longer-term holding behavior.

As a result, derivatives positioning continued to support the view that buyers retained influence over overall market sentiment.

XRP defends $1.05 support as traders monitor $1.15

At press time, XRP traded near $1.09 after repeatedly defending the $1.05 support level throughout July. Buyers had previously tried to reclaim $1.15, but each advance weakened before producing a sustained breakout.

The RSI was near 47, remaining below the neutral 50 level while showing signs of stabilization rather than renewed weakness. That reading suggested bearish pressure had eased, though buyers had not yet gained enough strength to take full control.

XRP’s price continued to compress between $1.05 and $1.15, forming a tightening range that often comes before a stronger directional move. If buyers reclaim $1.15, XRP could test the next resistance level near $1.30.

On the other hand, a loss of $1.05 would expose the psychological $1.00 level, where buyers would likely try to mount another defense before the broader trend became more vulnerable.

Overall, the combination of lower Binance activity, a higher NVT Ratio, and positive funding rates indicated that investors continued to favor accumulation over distribution.

Although transaction activity stayed relatively subdued, market positioning remained constructive across both spot and derivatives markets.

XRP would likely need a decisive move above $1.15 to confirm renewed strength, while continued defense of $1.05 remained important for maintaining the current bullish structure. Traders would also continue watching whether on-chain activity improves, since stronger usage would help validate the price structure more effectively than exchange-flow and derivatives data alone.