XRP’s market performance has been lackluster in recent days, even following the indirect approval of the Hashdex Nasdaq Crypto Index US ETF, an event many anticipated would spark positive momentum for the cryptocurrency. Instead, the altcoin continues to grapple with mixed signals from the broader market, which have hampered its progress.
Despite these challenges, long-term holders (LTHs) are stepping up to provide some stability, showing a commitment that may help push XRP’s price higher. Recent data from the Liveliness indicator reveals a positive trend for XRP, indicating a steady decline over the past two weeks. This measurement, currently at a two-month low, suggests a slowdown in supply movement from LTHs, highlighting a preference for holding or accumulating rather than engaging in large-scale selling.
This behavior among long-term investors indicates a degree of confidence, as they historically play a significant role in determining XRP’s price trajectory. Their reluctance to panic sell amid market uncertainties offers a buffer against sharp declines and signals a readiness to maintain their positions until a promising price recovery occurs.
Further insights into investor behavior come from the Long-Term Holder Net Unrealized Profit/Loss (NUPL) metric. Recent readings show that LTHs are holding off on selling, primarily due to limited realized profits at the current price levels. This cautious approach helps mitigate immediate downside risk. Historically, selling pressure from LTHs intensifies only when the NUPL exceeds 0.7, with more substantial pressure emerging above 0.75. As XRP has yet to reach these thresholds, it retains potential for recovery without significant risk of mass profit-taking by major holders.
As of now, XRP is trading at $2.84, just below the crucial $2.85 resistance level. Successfully flipping this barrier into support would likely signal the start of a bullish reversal, igniting positive sentiment among traders who are closely monitoring this area for confirmation. If the support from LTHs proves robust, XRP could target a rise to $2.94 in the short term. Surpassing this level would suggest further upward momentum, potentially leading to a price of $3.02, which would nullify near-term bearish concerns.
However, the outlook could shift if market conditions take a turn for the worse, or if LTHs begin to adopt a selling strategy. Such developments could result in XRP losing momentum and possibly retreating to the $2.75 level or even further down to $2.64, which would jeopardize bullish expectations and extend the current consolidation phase.
