XRP has struggled to recover its recent losses, and its prices have lacked upward momentum in recent sessions. Despite limited advances in the chart, Altcoin shows early signs of support.
It suggests that long-term holders are suggesting potential resilience to ongoing debilitating weakness in the broader crypto market.
XRP keychains are getting better
On-chain data highlights changes in XRP long-term holder activity. Hodler’s net position change shows that after almost a month of stable sales, investors with larger positions are back in accumulation. This turnaround has updated the potential for future prices for XRP, particularly convictions at current discount levels.
Over the past few days, these long-term holders have acquired over $600 million in XRP. This accumulation reflects an increased confidence that cryptocurrencies may find strength following this period of weakness.
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The wider macromomentum also supports the potential inversion of XRP. The Net Unrealized Profit/Loss (NUPL) indicator approaches the optimism threshold, which was the point where XRP prices were reversed upwards. Current terms suggest that investors are reducing profits and create a setup that has previously sparked rallies.
A decline in profit often serves as an incentive for new capital to enter, as lower valuations appeal to buyers. This dynamic has been seen in recent activities in XRP and is consistent with the accumulation of long-term holders.
XRP prices require boost
XRP traded at $2.91 at the time of writing and struggled under a $2.95 resistance. The asset has recently failed to break through the $3.07 resistance, causing prices to return to current levels. This rejection led to XRP consolidation without strong, short-term upward momentum.
However, investor support suggests that conditions could change soon. If XRP violates the $3.07 resistance, flipping $3.12 to support could cause fresh momentum. Such a move will bring mountain climbing to $3.27 and allow XRP to be placed with updated XRP after weeks of stagnant price action across the cryptocurrency market.
When the market is bearish, XRP can be raised to $2.74 or consolidated below $2.95. This result maintains pressure on the altcoin while preventing breakouts. Such price actions continue to constrain XRP and temporarily disable bullish outlook.
The after-reversal loom of XRP prices with the $600 million long-term holder purchase was first introduced in Beincrypto.
