Ripple’s XRP has been quietly accumulating strength, even as market conditions remain uncertain. The cryptocurrency has been range-bound for weeks, trading between $2 and $2.62. Yet, signs of steady accumulation and bullish momentum suggest a potential move toward the $2.4 mark, a critical resistance level.

This buildup comes amid mixed signals, with short-term sentiment leaning bearish while long-term prospects remain optimistic. Let’s dive into the key factors shaping XRP’s current market position and what traders can expect next.

Accumulation Signals Strength in the Range

For the past month, XRP has moved within a defined range of $2 to $2.62, showing little volatility but steady activity. The mid-point of this range, around $2.31, has alternated between serving as support and resistance. At present, XRP is struggling to climb above this level.

What makes this range significant is the accumulation pattern observed within it. The On-Balance Volume (OBV), which tracks buying and selling pressure, has been inching higher. This gradual increase suggests that selling pressure has been weak, allowing buyers to quietly take control.

Another encouraging sign is the Relative Strength Index (RSI), which has consistently stayed above the neutral 50 mark. This indicates that bullish momentum remains intact despite the lack of significant price movement.

Long-term investors may find this consolidation phase an attractive entry point. A dip toward the lower end of the range, around $2 or even $1.9, could offer a strong buying opportunity.

High-Leverage Liquidations Could Amplify Volatility

A closer look at XRP’s liquidation map reveals an interesting dynamic. There is a cluster of high-leverage liquidation levels between $2.33 and $2.4, making this range a hotbed of activity.

What this means for traders is that any upward move could trigger a cascade of liquidations, amplifying price volatility. This is especially true if XRP approaches the $2.4 level, where cumulative liquidation levels outweigh those near $2.21.

For swing traders, this presents a dual-edged sword: the potential for quick profits if XRP breaks higher, but also the risk of sudden reversals if resistance holds strong.

Short-Term Sentiment Leans Bearish

Despite the bullish signs of accumulation, short-term market indicators paint a more cautious picture.

Over the past 24 hours, XRP’s Open Interest and spot CVD (Cumulative Volume Delta) have both declined. These drops are indicative of reduced trading activity and selling pressure, largely influenced by Bitcoin’s recent downturn.

Additionally, the Funding Rate has dipped, signaling a bearish sentiment among leveraged traders. While this could act as a short-term headwind, it does not necessarily negate XRP’s long-term potential.

A Long-Term Perspective on XRP’s Growth

The long-term outlook for XRP remains positive, with prominent analysts like Peter Brandt predicting a market cap of $500 billion for the cryptocurrency. While such ambitious targets are speculative, they highlight the growing confidence in XRP’s role in the crypto ecosystem.

XRP’s steady accumulation and resilience against broader market volatility make it a compelling option for both long-term investors and short-term traders.

What Lies Ahead for XRP?

As XRP inches closer to the $2.4 resistance level, the next few days will be crucial in determining its trajectory. A breakout above $2.4 could pave the way for a retest of the upper range at $2.62. However, a rejection at this level might lead to further consolidation or even a dip toward the range lows.

Traders should keep a close eye on key support levels like $2.31 and $2.35. These zones could serve as strong re-entry points during pullbacks. Meanwhile, the broader market sentiment, especially Bitcoin’s performance, will play a pivotal role in shaping XRP’s short-term moves.

Conclusion XRP finds itself at a crossroads, with accumulation and bullish momentum hinting at a potential breakout but mixed signals urging caution. For traders and investors, this period of consolidation offers both opportunities and challenges. As XRP tests its limits, its performance will serve as a barometer for the wider crypto market.