XRP Price News: XRP Could Start Recovering as Dip-Buying at $1 Spikes

XRP (XRP) has dropped by nearly 7% in the past 7 days, and it is on track to hit the psychological $1 threshold as bears are still in control of the price action.

However, on-chain data and social metrics appear to indicate that dip-buying at this level is increasing.

According to data from Santiment, the number of new wallets created in a single day spiked to 4,941 yesterday. This is the highest reading in 14 weeks, and it reflects increased interest in storing XRP in external wallets.

Although the evidence does not indicate that this is a buy signal, it does confirm bullish behavior among investors that could help cushion the downtrend.

At a point when market sentiment is at extremely depressed levels, these kinds of spikes in buying interest at key levels could be considered a healthy sign, as it means that investors are starting to accumulate and see the asset as cheap at its current price.

Analysts from Santiment highlighted that “with price sitting so close to $1, traders will want to see whether this new wallet surge turns into real buying pressure or just short-term FOMO.”

We have indicated multiple times that we could be either near or at this cycle’s bottom despite an unfavorable macroeconomic backdrop. Could $1 be XRP’s definite floor? Not quite, but we do expect that the $0.80 level could be it.

Inflows to Exchanges Spike to Highest Level Since July 2025

We have also been tracking a sustained spike in the amount of XRP sent to exchanges, as this is a worrying sign that could anticipate further drops in the price of the token.

XRP Exchange Inflows – Source: Santiment

Right now, this on-chain metric sits at its highest level since July 2025, near the levels at which XRP peaked during its latest bull market.

This increases the odds of a big upcoming whale dump that could push the price below $1 in the near term. The last time this metric got this high, the price started a strong descent from $3.50 to $1.20 in around 6 months.

Based on this evidence, we lean toward a bearish outlook and see this altcoin potentially dropping to $0.80 in the near term.

XRP Offers Interesting Opportunity for a Short Position

Heading into the charts, we recently emphasized that a break below $1.08 – $1.06 would set the stage for the beginning of XRP’s next leg down.

This is exactly what’s happening today, and an interesting trading opportunity has emerged as a result. Right now, a short position with a target set at around $0.80 would yield a 2x risk-reward ratio.

However, since we expect a technical bounce off the $1 psychological support before the downtrend continues, this could provide a much better entry for short sellers in the next few days.

Patient traders would wait for the price to come back up to around $1.08 and open a short position at that point. Such a trade would offer a higher 3x risk-reward ratio.

The Relative Strength Index (RSI) has dropped to 30 in the past few days, confirming that bearish momentum is accelerating.