XRP Prints Bullish Divergence Above $1 as Ripple CTO Refutes Shutdown Panic

XRP News

XRP, the native token of the XRP Ledger, is charting a bullish reversal above the psychological $1.00 mark after weeks of grinding to local lows. As the price probed the $1.02–$1.06 range, the relative strength index climbed steadily out of oversold territory — a textbook bullish divergence in which price sets lower lows while momentum sets higher lows. The pattern signals that selling pressure is fading and sellers are running short of conviction. XRP is now attempting to consolidate near $1.09 while defending the $1.00 level. Traders reading the chart interpret the divergence as an early sign that bearish momentum is exhausting ahead of a potential upward rotation across the broader altcoin complex.

The technical setup collided with a social-media storm over Ripple’s history. Ripple CEO Brad Garlinghouse disclosed at a University of Kansas business-school event that in December 2020, reeling from the freshly filed lawsuit, leadership briefly weighed shutting the company down and distributing its XRP holdings to shareholders. He said the firm instead chose to fight, a defense that ultimately cost roughly $150 million in legal fees but preserved the business. Garlinghouse framed the decision as existential rather than routine, arguing the regulator’s resources left Ripple facing a genuine survival question rather than an ordinary compliance dispute over its token sales.

When outlets amplified the remarks into headlines about capitulation and asset liquidation, Ripple CTO Emeritus David Schwartz pushed back sharply against the panic. He said his earlier comments had been taken out of context, stating plainly that he never claimed Garlinghouse seriously considered shutting the company down. Schwartz recalled the intense pressure of the 2020 period without endorsing the narrative that a wind-down was ever imminent. The clarification cooled speculation that the firm had come close to dissolving, reframing the episode as a stress-tested contingency rather than an actual plan management was prepared to execute.

Garlinghouse detailed the mechanics of the shelved plan: Ripple would have distributed its XRP to shareholders on a pro-rata basis, then formally notified the regulator it no longer held the asset the agency deemed a security. That move would have removed the legal basis of the enforcement action. Management rejected it, and Garlinghouse said the deciding factor was not confidence in winning but protecting jobs — a shutdown would have put hundreds of employees out of work, while litigating kept the company operational. He confirmed the four-year fight cost about $150 million, the first time he has publicly disclosed the figure.

Fresh on-chain data points to accumulation beneath the surface. Spot inflows on Binance surged, with roughly 64.9 million XRP flowing in against 49.2 million XRP flowing out on July 7 — a net spot-buying imbalance of about 15.7 million XRP. Derivatives open interest, meanwhile, fell from above $500 million in mid-June to $431 million by July 4 and $399 million by July 10. Long liquidations jumped 94% week-over-week, running 172% above the three-month average, while short liquidations dropped 53%. Analysts flag the combination — capital rotating into spot while leverage unwinds — as a classic mid-cycle reversal signal, noting a similar April 2025 setup preceded a 126% rally.

Beyond the charts, XRP Ledger ecosystem momentum is building. Markus Infanger, senior vice president of RippleX, will speak at XRP Seoul 2026, an event hosted by XRP Ledger Korea on October 3 during Korea Blockchain Week. Infanger oversees Ripple’s contributions to the ledger, spanning product development, partnerships and developer-ecosystem growth, positioning him to preview upcoming technical work. He joins Ripple president Monica Long, announced in June as a key speaker. The timing matters: Korea remains one of XRP’s most active markets, where the token ranks as the second most-traded asset by volume on Upbit, the country’s largest exchange.

Our reading of the tape places XRP at $1.0938, down 1.43% on the day and still in a broader downtrend despite a bullish MACD crossover and an RSI of 44. COINOTAG’s proprietary 42-indicator composite scoring engine rates immediate resistance at $1.1187 a perfect 100/100, driven by the confluence of the Ichimoku Kijun, the R1 pivot and EMA 20, with a second wall at $1.1475 scoring 96/100 from the ATR upper band and R3. On support, $1.0701 scores 89/100 (S3, swing low, ATR lower). Derivatives show a slightly positive 0.0027% funding rate, $639 million open interest and a crowded 3.33 long/short ratio — 76.9% long — a positioning risk if $1.0701 breaks. With Fear & Greed at 26 (Fear), reclaiming $1.1187 validates the bullish divergence; losing $1.0701 invalidates it.