XRP is showing early signs of a potential breakout, with long-term holders stepping up their game and market sentiment leaning positive. Although the asset has yet to make a dramatic move, subtle yet crucial on-chain and technical indicators suggest that Ripple’s native token could be gearing up for a bigger move.
Despite broader market volatility, XRP has managed to hold its ground and even make slight gains in recent sessions. But beneath the surface, it’s the behavior of long-term investors and futures traders that has started to catch analysts’ attention.
One of the strongest signals comes from the long-term holders (LTHs) of XRP. These are the investors who typically hold through market cycles and aren’t quick to move assets based on short-term noise. According to recent data, the on-chain metric known as “liveliness” has dropped over the past week.
Liveliness measures the movement of long-held tokens and helps determine whether experienced investors are selling or accumulating. A decrease in this metric often suggests that holders are not actively trading or offloading their coins—instead, they’re keeping them locked away or moving them into cold storage.
Between June 5 and June 8, XRP’s liveliness fell by 1%, dropping to 0.809, based on Glassnode’s readings. This seemingly minor decline actually points to a larger pattern: long-term investors appear to be quietly accumulating or holding, rather than exiting their positions.
Such behavior typically reflects growing confidence in the asset’s future, especially during uncertain or transitional periods in the broader crypto market.
On the derivatives front, funding rates for XRP have remained consistently positive since June 6. This is a key metric in perpetual futures trading that shows whether bulls or bears are paying to hold their positions.
Currently hovering around 0.0099%, the funding rate indicates that more traders are betting on XRP rising in value. In essence, shorts are paying longs, showing that the majority of market participants are holding bullish expectations.
When funding rates remain positive over several days or weeks, it signals confidence from leveraged traders. This kind of sentiment often translates into upward price pressure in the spot market, especially if coupled with increased demand and decreasing supply.
While the signs are positive, XRP still faces critical resistance levels that could slow its progress. After reaching highs near $2.32 recently, the token faced rejection and pulled back slightly, forming a red candle on the daily chart.
This level remains a significant short-term barrier, and how XRP reacts around this zone may determine its near-term direction.
Technical indicators show room for growth, albeit cautiously. The Relative Strength Index (RSI) is currently at 54.81, which is neutral but slowly pushing toward overbought territory. This suggests there is still room for upward movement, although momentum might cool if buyers become hesitant.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has also shown signs of bullish continuation. The MACD histogram has flipped green, and the signal line crossover hints at a possible extension of the current uptrend—provided resistance is overcome.
Taken together, the combination of declining liveliness, positive funding rates, and resilient technical indicators suggests that XRP may be building up for a stronger move. However, that move may not be immediate.
The crypto market remains sensitive to global macroeconomic signals, regulatory developments, and broader risk sentiment. Even if the internal dynamics of XRP appear healthy, sudden shifts in external conditions can affect price direction.
What makes XRP’s situation unique right now is the alignment between long-term holders and derivatives traders. When both camps lean bullish, it often results in more sustained moves rather than quick spikes.
For XRP to maintain its momentum and break above the $2.32 resistance, a few key conditions will need to be met:
Sustained Positive Funding Rates – Continued bullishness in the futures market can help support upward price moves, especially if open interest also increases.
Liveliness Staying Low or Dropping Further – This would confirm that long-term holders are maintaining their positions, a sign of conviction and reduced sell pressure.
Technical Break Above Resistance – Clearing the $2.32 barrier with strong volume could set the stage for a new leg up, possibly toward the $2.50–$2.60 range.
Macro Stability – Broader market conditions, especially related to interest rates and regulatory clarity in the U.S., will also play a major role in determining if XRP’s bullish structure can hold.
XRP is quietly strengthening its position in the market, even as broader crypto headlines focus on other assets. While it’s not making explosive moves yet, the combination of long-term accumulation and rising bullish sentiment in the derivatives market hints at potential upside ahead.
Still, traders should remain cautious around key resistance levels and be prepared for temporary pullbacks or consolidation. If XRP manages to break through $2.32 with confidence, it could open the door to higher price targets as investor confidence continues to grow.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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