XRP is trading in a tight range after a recent rally, showing signs of consolidation that suggest the market is currently in a wait-and-see mode. While short-term momentum has cooled, long-term holders are steadily accumulating XRP, positioning for a possible breakout in the near future.

This behavior could indicate growing confidence in XRP’s long-term outlook, especially if broader crypto market sentiment begins to shift in favor of risk assets.

XRP Moves Sideways After Brief Rally

Earlier this week, XRP saw a 7% price increase, boosted by positive market sentiment following news of a ceasefire agreement between Israel and Iran. However, that momentum was short-lived. Since the surge, XRP has been trading sideways, reflecting uncertainty among traders.

Both buyers and sellers appear to be at a standoff, with no clear direction emerging. Technical indicators like the Relative Strength Index (RSI) back up this cautious sentiment. As of the latest reading, the RSI stands at 49.97—right around the neutral level of 50. This shows that buying and selling pressure is currently balanced.

In addition to the RSI, the Average True Range (ATR) has been declining, indicating lower volatility. Currently, XRP’s ATR is at 0.101, suggesting a weakening trend in price movements. A falling ATR typically signals that the asset’s price fluctuations are becoming narrower, which often precedes a breakout.

Long-Term Holders Strengthen Their Position

Amid the lack of short-term momentum, long-term holders (LTHs) of XRP are quietly taking advantage of the consolidation phase. Data from Glassnode reveals a notable drop in XRP’s Liveliness metric, which has reached a year-to-date low of 0.808.

Liveliness measures how often dormant tokens are moved. A lower value suggests that fewer long-term tokens are being sold, indicating growing conviction among holders. Essentially, long-term investors are holding onto their XRP, despite the current price stagnation.

This accumulation pattern is often seen as a bullish signal. It suggests that seasoned investors believe in the asset’s upside potential and are willing to weather short-term market noise in anticipation of future gains.

Technical Levels to Watch

From a price action perspective, XRP is currently testing support around $2.08. If bulls maintain control at this level and accumulation continues, XRP could soon test the overhead resistance near $2.21. A successful breakout above that level may push prices toward $2.29 in the short term.

However, if profit-taking resumes and XRP slips below $2.08, the next support to watch is at $1.99. A break below this level would likely confirm a bearish trend, signaling a shift in market sentiment.

Market Sentiment Key to Next Move

The broader crypto market’s tone will play a crucial role in determining XRP’s short-term direction. If Bitcoin and other major assets regain strength in the coming weeks, risk-on sentiment could fuel demand for XRP as well. This, combined with ongoing accumulation by long-term holders, may provide the fuel needed for a breakout.

On the flip side, if the market remains flat or turns risk-averse again, XRP may continue to drift sideways or even lose ground, despite positive signals from its long-term investor base.

Final Thoughts

XRP’s price movement is currently marked by indecision, but behind the scenes, long-term holders are actively accumulating. This pattern has historically preceded strong bullish moves, especially when supported by a favorable macro environment.

For now, XRP is holding above key support levels, and with long-term conviction building, the stage may be set for a significant breakout—if the broader market turns more favorable.