XRP Primed for Explosion? Long-Term Holders Are Stacking Up Amid Consolidation

XRP coils tighter than a spring as whales gobble up tokens—ready to snap into a parabolic rally or just another 'institutional accumulation' fairy tale?

The Accumulation Game

On-chain sleuths spot wallets with diamond hands loading XRP bags while retail snoozes. The last time this happened, prices ripped 300% in 90 days. History lesson or hopium?

Liquidity Squeeze Incoming

Trading volume evaporates to 2023 levels as bids stack up below $0.50. Market makers love thin order books—just ask the CFTC.

The Cynic's Take

Sure, 'smart money' accumulates. They also dump on your breakout tweets. Welcome to crypto, where every chart pattern is a Rorschach test for bagholders.

XRP Rally Stalls After 7% Surge 

The announcement of the Israel-Iran ceasefire on Monday triggered a bullish shift in broader market sentiment, pushing XRP’s value up by 7% that day.

However, this momentum has stalled over the past two days, with the altcoin trending sideways. Neither buyers nor sellers are gaining a decisive edge in the short term.

Key technical indicators confirm this standoff. For instance, XRP’s Relative Strength Index (RSI) has flattened since Tuesday, indicating a relative balance between buying and selling pressures. At press time, the RSI stands at 49.97, hovering around the neutral 50 mark since Tuesday.

When an asset’s RSI flattens like this, it signals indecision in the market, with no clear directional bias.

Additionally, XRP’s Average True Range (ATR) has steadily declined during the review period. At press time, it is 0.101.

The ATR measures the degree of price movement over a given period. When it trends downward like this, it typically indicates that price fluctuations are narrowing and overall momentum is weakening.

Long-Term Holders Show Resilience

Data from Glassnode shows a consistent drop in XRP’s Liveliness, even as the token continues to struggle amid the broader market’s weakness over the past few weeks.

This metric, which tracks the movement of previously dormant tokens, fell to a year-to-date low of 0.808 yesterday, indicating a notable decline in sell-offs among XRP’s LTHs.

Liveliness measures the movement of long-held tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it climbs, it suggests that more dormant tokens are being moved or sold, often signaling profit-taking by long-term holders.

Converesly, when Liveliness declines, it indicates that LTHs are moving their assets off exchanges and opting to hold.

For XRP, this suggests that despite its recent sideways action, conviction among long-term holders remains strong. If this trend continues, it could set the stage for a bullish breakout once broader market sentiment improves.

XRP Eyes Breakout as Accumulation Rises 

A continued rise in LTH accumulation and a shift in broader crypto market sentiment toward risk assets could position XRP to break out of its current range and enter a sustained uptrend as Q3 commences.

An increase in demand could propel the token’s price above the resistance at $2.21 and push it toward $2.29.

However, XRP’s value could slip to $2.08 if profit-taking resumes. A failure by the bulls to defend this level may open the doors for a further decline toward $1.99.