Ripple’s XRP has scored 10% in the past week, breaking the market strength. Amid the broader rise in crypto markets, data suggests that this rally is supported by an aggressive accumulation from short-term holders (STH).
This reflects the growing confidence among traders who often play a crucial role in shaping the short-term price action of tokens.
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XRP will now be boosted by short-term holders
According to GlassNode, XRP STH (one of the 1-3 month bracket) has steadily increased supply over the past month. This is a trend that peaked at last week’s double-digit token gathering.
On-chain analysis of XRP HODL waves shows that this cohort has expanded its holdings by 38% over the past 30 days.
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HODL Waves metrics track the time coins are held across different investor groups and provide insight into market retention patterns.
An increase in XRP’s STH supply is important as this group often controls a significant portion of the circulating token and typically responds quickly to market conditions. This makes it noteworthy as accumulation or distribution patterns often affect short-term price movements.
The gradual accumulation of XRP holdings by STH strengthens the case of sustained momentum. This suggests that if the broader conditions are stable, market confidence is increasing and potential rises will be possible.
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Additionally, measurements from the relative strength index (RSI) of XRP on the daily chart support this bullish outlook. At the time of writing, the momentum indicator is 59.65, trending upwards, highlighting the bullish slope in market sentiment.
RSI measures whether assets are acquired or oversold on a scale of 0-100. Measurements above 70 points exceed the buy-out conditions and potential price drops, but readings below 30 could be overselling and rebounding signals below 30.
Therefore, the 59.65 XRP RSI shows strong demand for cryptocurrency, leaving even more room for the opposite before facing significant sales pressure.
XRP could surge to $3.66
Due to sustained buy-side pressure, XRP could attempt to infringe the resistance for $3.22. If successful, the token could extend its profits towards $3.66.
Meanwhile, if demand plunges, XRP prices could fall backwards to $2.87.
