After Monday's peak, XRP's price appears to have entered a consolidation phase. This sideways movement reflects a cautious market.
Interestingly, this adjustment period is being noted as a strategic buying opportunity among long-term holders (LTH).
XRP Pauses After 7% Surge
Monday's Israel-Iran ceasefire announcement triggered a market-wide upward shift, causing XRP's value to rise by 7% that day.
However, this momentum has stagnated over the past two days, with altcoins remaining range-bound. Neither buyers nor sellers have gained a decisive advantage in the short term.
Key technical indicators confirm this stalemate. For example, XRP's Relative Strength Index (RSI) has flattened since Tuesday, indicating a balance between buying and selling pressure. At the time of reporting, the RSI is 49.97, hovering near the neutral 50 since Tuesday.
Such a flat RSI indicates a lack of directional bias in the market.
Additionally, XRP's Average True Range (ATR) has steadily decreased during the review period. At the time of reporting, it is 0.101.
XRP ATR. Source: TradingView
The ATR measures the extent of price movement over a given period. Such a decline typically indicates narrowing price volatility and weakening overall momentum.
Long-Term Holders Show Resilience
According to glassnode data, XRP's liveliness continues to decrease, with the token struggling amid overall market weakness in recent weeks.
This indicator tracks the movement of previously inactive tokens and dropped to its annual low of 0.808 yesterday, indicating a decrease in selling among XRP's long-term holders.
Liveliness calculates the ratio of coin days destroyed to total coin days, measuring the movement of long-held tokens. When rising, it indicates more inactive tokens are moving or being sold, often suggesting long-term holder profit-taking.
Conversely, a decrease in liveliness suggests LTHs are moving assets off exchanges and holding.
For XRP, this indicates strong conviction among long-term holders despite recent sideways movement. If this trend continues, it could set the stage for a bullish breakout if market sentiment improves.
XRP Poised for Breakout with Increased Accumulation
The continued increase in accumulation by long-term holders and a shift in sentiment towards risk assets in the cryptocurrency market could position XRP to enter a sustained uptrend as Q3 begins.
Increased demand could push the token's price above the $2.21 resistance level and towards $2.29.
However, if profit-taking resumes, XRP's value could drop to $2.08. If buyers fail to defend this level, it could open the way to a further decline to $1.99.
