XRP (CRYPTO: XRP) is up 5% in 24 hours, its strongest bounce since the June 15 short squeeze. The token is now challenging the year-long descending trendline dating back to the July 2025 $3.40 peak.

XRP ETFs Just Logged Their First Back-To-Back Outflows Since March

U.S. spot XRP ETFs recorded $1.86 million in outflows on July 1, following a $2.83 million outflow on June 30, the first consecutive outflow days since March 9-10. 

Despite those two days, the ninth straight week of XRP ETF flows remains net positive at roughly $10 million, extending what had been eight consecutive weeks of inflows. The outflows look like a blip rather than a trend reversal so far.

Derivatives Are Backing The Move With Real Money, Not Just Short Covering

Open interest jumped 6.85% to $2.44 billion alongside a 29% volume spike, pointing to new longs entering rather than shorts closing. 

Options volume exploded 81%, with traders actively buying calls on the bounce. Top traders on Binance sit long at a 2.94 ratio while the overall crowd remains nearly neutral at 1.07, leaving a large retail short base that could get squeezed if price holds above $1.10.

Meanwhile, spot netflow adds the most convincing signal. $9.06 million worth of XRP flowed off exchanges today, meaning holders are withdrawing rather than selling into the bounce, a sign of accumulation rather than distribution.

XRP Is Now Testing The Most Important Level Of The Entire Downtrend

Price has broken above the 20 EMA at $1.1044 for the first time in weeks and now tests the BB mid at $1.1137 at exactly the same level as the year-long descending trendline from July 2025’s $3.40 peak. 

That trendline has rejected every meaningful rally attempt for eleven months.

A daily close above $1.1137 and the trendline targets $1.1895 then $1.2349. Rejection at the BB mid fades price back toward the $1 demand zone floor.

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