Ripple’s XRP has gained 10% in the past week, signaling renewed market strength. Amid the broader crypto market uptick, data suggests that this rally is backed by aggressive accumulation from short-term holders (STHs). This reflects growing confidence among traders who often play a decisive role in shaping the token’s near-term price action.
XRP Rallies as Short-Term Holders Boost Supply
According to on-chain analytic platform Glassnode, XRP short-term holders—those who have held the token for a period of 1 to 3 months—have steadily increased their holdings over the past month. This trend is significant as it has culminated in the token’s impressive double-digit rally over the past week.
On-chain analysis through XRP’s HODL Waves indicates that this specific cohort has expanded its supply by 38% within the last 30 days. The HODL Waves metric tracks the duration for which coins are held by different investor groups, providing crucial insights into market holding behaviors and trends.
The increase in XRP’s supply by short-term holders is particularly noteworthy because this group typically represents a substantial portion of the circulating tokens. They are usually quick to react to market fluctuations, making their buying or selling behaviors important indicators of the token’s near-term price movements. A gradual accumulation by these holders signals a revival of optimism in the market.
This renewed confidence suggests that there could be sustained upward momentum for XRP. If market conditions remain stable, further price appreciation seems plausible, reinforcing the belief that the current rally has strong underpinnings.
Indicators Point to Bullish Momentum
A deeper look into technical indicators reveals additional supportive data for XRP’s bullish outlook. The Relative Strength Index (RSI) provides insights into price movement dynamics and current demand levels. At the time of writing, XRP’s RSI sits at a favorable 59.65 and is trending upward. This reading signifies a generally bullish market sentiment and suggests that there is still room for further upside before potential selling pressure takes effect.
The RSI is a momentum oscillator that ranges from 0 to 100. When the indicator surpasses 70, it signals overbought conditions and an impending price correction, while readings below 30 indicate oversold conditions, often leading to price rebounds. Therefore, XRP’s current RSI suggests a positive demand trajectory yet indicates caution about excessive overbought conditions just around the corner.
Price Predictions: Path to $3.66 or Lower to $2.87?
Market analysts are now keeping a watchful eye on key price levels for XRP. Should buy-side pressure continue to build, it may reach to breach its immediate resistance at $3.22. A successful break could lead to further gains and potentially drive the token toward a high of $3.66, a level not seen since July 18.
Conversely, should demand subside, the price might retrace to $2.87. Traders and investors are advised to maintain vigilance on market trends and indicators to guide their strategies effectively.
