XRP Strengthens as Long-term Holders Rise — Is a Breakthrough Coming?

Since closing at a high on Monday, the price of XRP seems to have entered a range-bound phase. This sideways volatility reflects a cautious market. Interestingly, this consolidation phase has attracted the interest of long term holders (LTH), who now see this as a strategic buying opportunity. XRP Price Surge Stalls After Increasing 7% The announcement of a ceasefire between Israel and Iran on Monday triggered a positive shift in overall market sentiment, pushing the value of XRP up by 7% that day. However, this uptrend has stalled in the past two days, with altcoin trends moving sideways. Neither buyers nor sellers have gained a decisive advantage in the short term. Key technical indicators confirm this stalemate. For example, the Relative Strength Index ( RSI ) of XRP has been flat since Tuesday, indicating a relative balance between buying and selling pressure. At the time of writing, the RSI is at 49.97, oscillating around the neutral mark of 50 since Tuesday.

When the RSI of an asset is flat like this, it signals indecision in the market, with no clear trend. In addition, the Average True Range (ATR) of XRP has steadily decreased throughout the evaluation period. At the time of reporting, it is 0.101.

ATR measures the level of price volatility over a certain period of time. When there is a downtrend like this, it usually indicates that price volatility is contracting and the overall momentum is weakening. Long Term Holders Show Resilience Data from Glassnode shows that the Liveliness level of XRP has been continuously declining, even as this token continues to struggle in the context of the overall market weakening over the past few weeks. The index, tracking the movement of previously inactive tokens, has dropped to a yearly low of 0.808 yesterday, indicating a significant decrease in the sell-off of XRP LTHs.

Volatility measures the movement of tokens that are held long term by calculating the ratio of days the coin is destroyed to the total number of days the coin is accumulated. When it increases, it indicates that more inactive tokens are being moved or sold, often signaling profit-taking by long term holders. On the contrary, when Liveliness decreases, it indicates that LTHs are moving their assets off the exchange and choosing to hold. For XRP, this indicates that despite the recent sideways action, the confidence of long term holders remains strong. If this trend continues, it could set the stage for a bullish breakout as the overall market sentiment improves. XRP Aiming for Breakthrough as Accumulation Increases The continuous increase in long term accumulation and the change in the overall market sentiment towards risk assets may help XRP break out of its current range and enter a sustainable uptrend as Q3 begins. Increased demand could push the price of this token past the resistance level of $2.21 and towards $2.29.

However, the value of XRP could drop to $2.08 if profit-taking continues. The inability of the buyers to defend this level could open the door for the next drop to $1.99.