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XRP’s price is currently consolidating, reflecting market indecision and a cautious short-term outlook amid recent geopolitical developments.
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Long-term holders (LTHs) are steadily accumulating XRP, signaling growing confidence that could precede a bullish breakout if overall sentiment improves.
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According to COINOTAG sources, a breakout above $2.21 could trigger a significant upward move, while failure to hold key support levels may lead to a decline toward $1.99.
XRP price consolidates with long-term holders accumulating; a breakout above $2.21 could signal bullish momentum, while support at $2.08 remains critical.
XRP Rally Stalls After 7% Surge Amid Market Uncertainty
The recent announcement of the Israel-Iran ceasefire on Monday catalyzed a bullish shift in market sentiment, propelling XRP’s price up by 7%. However, this surge has since stalled, with the token entering a range-bound phase characterized by sideways price movement.
Technical indicators reinforce this cautious stance. XRP’s Relative Strength Index (RSI) has flattened near the neutral 50 mark, currently at 49.97, indicating a balance between buying and selling pressures without a clear directional bias.
Similarly, the Average True Range (ATR), a measure of price volatility, has steadily declined to 0.101, suggesting narrowing price fluctuations and weakening momentum.
This combination of technical signals highlights a market in equilibrium, awaiting a catalyst to break the current impasse.
Long-Term Holders Demonstrate Resilience Amid Sideways Trading
Data from Glassnode reveals a consistent decline in XRP’s Liveliness metric, which tracks the movement of long-held tokens. The metric recently hit a year-to-date low of 0.808, indicating reduced sell-offs by long-term holders despite recent market volatility.
Liveliness measures the ratio of coin days destroyed to coin days accumulated. A declining Liveliness suggests that long-term holders are increasingly choosing to retain their positions rather than liquidate, signaling confidence in XRP’s future prospects.
This steadfast accumulation by LTHs could provide a foundation for a potential bullish breakout once broader market conditions become favorable.
XRP Positioned for Potential Breakout as Accumulation Increases
With long-term holders accumulating and market sentiment gradually shifting toward risk assets, XRP is poised to break out of its current consolidation range. A decisive move above the resistance level at $2.21 could open the door to further gains, potentially pushing the price toward $2.29.
Conversely, if profit-taking intensifies and XRP fails to maintain support at $2.08, the price could retrace further to the $1.99 level. Maintaining this support is critical for sustaining bullish momentum.
Conclusion
XRP’s current consolidation phase reflects a market in balance, with long-term holders demonstrating resilience through steady accumulation. While short-term price action remains indecisive, a breakout above $2.21 could signal renewed bullish momentum. Traders and investors should closely monitor key support and resistance levels, as these will likely dictate XRP’s trajectory in the coming weeks.
