Recent data from Santiment reveals a significant decline in activity on the XRP Ledger, with daily active addresses dropping to 25,350 and 24,887 on July 9 and 10, making these figures the second lowest recorded in 2026. In addition, the daily network growth reached a low of 2,130, the lowest since November 2024.

Current market sentiment among traders appears to be one of caution, with many waiting for a substantial price movement rather than pursuing minor price gains, similar to those observed in mid-June and early April. This trend is further supported by the spot cumulative volume delta (CVD) data, which indicates that market participation has been neutral in the past 90 days, as per CryptoQuant.

The declining spot CVD is not yet in a sell-dominant phase; however, it reflects a recent decrease in buying activity since March, following a brief spike in taker buying in May which saw XRP's price briefly rise to $1.55 before falling back to around $1.10.

Moreover, the net position change on exchanges has shown negative values in recent months, indicating that XRP tokens are moving out of exchanges, likely into cold storage for long-term holding. Despite this outflow, it is not as pronounced as outflows observed during 2025.

Funding Rates and Market Sentiment

Funding rates for XRP have reached notably low levels. Analyst Darkfost notes that the 30-day average funding rates remain negative through 2026. After a significant drop of over 70% from its peak of $3.66 in July 2025, the prevailing bearish sentiment could hint at a potential medium-term reversal. Historical data reveals that periods of sustained negative funding rates, like in April 2025, were followed by substantial price rallies.

At present, XRP's spot demand is decreasing, with the price hovering around the $1.10 support level. The strong bearish consensus following a price correction could suggest a potential bullish reversal in the medium term, but a significant shift in spot volume trends will be necessary for this to materialize.

This material is informational and should not be considered financial advice.