XRP, the digital asset powering the Ripple network, is exhibiting clear signs of a technical rebound, with a bullish divergence appearing on its price charts as of July 12, 2026. This positive technical indicator has coincided with Ripple Labs Inc.
Chief Cryptographer and Chief Technology Officer (CTO) Emeritus David Schwartz actively clarifying past statements about the company’s survival. He’s pushing back against misinterpretations of earlier remarks regarding Ripple’s options during its legal battle with the U.S. Securities and Exchange Commission (SEC).
Technical signals indicate XRP rebound
The combination of these technical signals and a concerted effort from Ripple’s leadership to manage the narrative suggests a pivotal moment for the altcoin. It follows revelations from Ripple CEO Brad Garlinghouse concerning the company’s internal discussions during the challenging period of the SEC lawsuit in December 2020.
Throughout early July 2026, the Relative Strength Index (RSI) on the XRP chart began a steady ascent from oversold territory. This occurred even as XRP’s price was registering new local lows in the $1.02 to $1.06 range. In technical analysis, this pattern is known as a bullish divergence, indicating that sellers are losing momentum and bearish pressure is easing.
The weekly RSI, which had dipped near 34, confirmed this divergence, recovering to an average range. While this points to eased bearish sentiment, strong bullish conviction hasn’t fully materialised yet. XRP is now attempting to consolidate its position around $1.0914, holding above the psychological $1.00 level.
XRP’s current price position and key levels
Key support levels for XRP are observed at $1.08 and $1.07, with a particularly strong floor at $1.06. This level saw a substantial 830 million XRP reportedly acquired, underscoring its importance to current holders. Yet, the path upward remains challenging for the altcoin.
XRP faces immediate resistance around the $1.15 supply zone, with a more formidable major resistance area between $1.17 and $1.24. Overcoming these resistance points will be crucial for any sustained upward price movement in the coming weeks. Traders and investors are closely watching these levels for potential breakouts, reflecting a broader trend of XRP speculative activity returning to test key resistance levels.
Other technical signals supporting a potential rebound
Beyond the RSI, other technical indicators reinforce the narrative of a potential reversal for the XRP price. The Moving Average Convergence Divergence (MACD) has shown improving momentum, which often precedes positive price action. A hidden bullish divergence on the MACD was also noted in September 2025, hinting at robust underlying demand even during periods of price stagnation.
Despite these nascent positive signals, XRP remains positioned below its 100-day and 200-day moving averages when traded against USDT. It also sits beneath its 60-day and 200-day long-term moving averages. The 50-day exponential moving average currently acts as the immediate dynamic resistance, while the ongoing compression of XRP’s 50 EMA, 100 EMA, and 144 WMA suggests a potential bottoming process.
Ripple leadership clarifies past shutdown talks
The technical developments on XRP charts are unfolding alongside crucial clarifications from Ripple leadership regarding the company’s long-term viability. The recent social media discussion stemmed from revelations by Ripple CEO Brad Garlinghouse. Garlinghouse admitted that in December 2020, with the company reeling from the SEC lawsuit, Ripple’s leadership briefly considered shutting down the firm.
During this period, Garlinghouse and co-founder Chris Larsen discussed distributing Ripple’s XRP holdings to shareholders on a pro rata basis and dissolving the business. This was seen as an “easier path” when facing an agency with “infinite power and resources,” as legal counsel at the time reportedly advised that Ripple was “doomed and beyond saving,” urging an immediate settlement with the SEC.
David Schwartz addresses narrative misinterpretations
When media outlets began to interpret these historical discussions as recent considerations of company capitulation or asset liquidation, Ripple CTO Emeritus David Schwartz intervened. Schwartz sharply pushed back against what he called out-of-context reporting. He stated unequivocally, “I never said Brad seriously considered shutting down the company.”
His clarification aimed to curb panic and correct the narrative, emphasizing that these were internal deliberations from a particularly challenging period, not current intentions. The legal battle with the SEC, which officially began on December 22, 2020, undeniably left a negative mark on XRP.
The lawsuit contributed to the token losing momentum in global adoption and surrendering market share to competitors in the altcoin space. Ripple ultimately spent approximately $150 million in legal fees fighting the lawsuit.
Regulatory journey and market outlook for XRP
The SEC lawsuit was a pivotal moment for Ripple and the broader crypto industry. A July 13, 2023, summary judgment partially favored Ripple, distinguishing between institutional sales (deemed unregistered securities offerings) and programmatic sales (not considered securities transactions).
The court later ordered Ripple to pay a civil penalty of $125,035,150 for its institutional sales violations on August 7, 2024, denying the SEC’s requests for disgorgement of profits.
Both Ripple and the SEC eventually dropped their respective appeals by August 22, 2025, effectively concluding the district court case. This history underscores the intense pressure Ripple’s leadership faced. David Schwartz, one of the original architects of the XRP Ledger in 2011, has been a consistent voice providing technical and historical context.
His recent efforts to clarify past statements are likely aimed at reassuring a market that is, according to some analysts, “tired of old fears.” The ongoing regulatory environment continues to shape the trajectory for many altcoins. Discussions around regulatory clarity are often seen as vital for the sector’s maturity.
Outlook for XRP: consolidation and market reassurance
The current confluence of a bullish technical signal and direct reassurance from a key Ripple figure could provide XRP with a strong opportunity. This combination may pave the way for a sustained period of local consolidation, allowing the token to build a more stable foundation.
The market’s reaction to Schwartz’s direct clarification, coupled with the fading bearish momentum on the charts, suggests that investors may be ready to move past the lingering anxieties of the past.
Analysts are now watching to see if XRP can leverage this renewed sentiment to break out of its descending channel against USDT and Bitcoin. While it remains below major moving averages, the improving MACD momentum and the clear bullish divergence offer glimmers of hope.
Potential upside targets include reclaiming the $1.20-$1.30 range if XRP can firmly move above its 50-day average, with some projections reaching towards $1.50, approximately 32% above its July 04, 2026, levels.
The immediate challenge for XRP will be to maintain consolidation above $1.00 and overcome the identified resistance levels. If it can do so, the recent market dynamics, combined with clearer communication from Ripple, might just be the catalyst needed for the altcoin to reclaim some of its lost market share and re-establish a growth trajectory in the competitive crypto landscape.