XRP Price Nears Potential Surge: Key Levels and Market Dynamics
XRP Price Edges Closer to a Potential Breakout
In the last 24 hours, XRP has climbed by 5%, trading around $2.46, continuing its short-term upward trend. Despite this, the cryptocurrency remains 18% lower over the past month, indicating that a full recovery is still underway.
Shift in Investor Behavior
Recent on-chain data indicates a change in investor behavior, with long-term holders reducing their selling activity while short-term investors are increasing their XRP exposure. This suggests a growing confidence in the market, though a key price level remains crucial.
Long-Term Holders Slow Down Selling
The Hodler Net Position Change, which tracks the net XRP movement among long-term investors, shows a significant shift. Between October 16 and 17, there was heavy selling with a net outflow of –18.57 million XRP. By October 19, this dropped sharply to –3.28 million XRP, reducing selling pressure by over 82%. This change in behavior could be a precursor to a price recovery.
Short-Term Investors Increase Holdings
Meanwhile, the proportion of XRP held by short-term investors (1-week to 1-month) rose from 1.94% on October 5 to 3.97% on October 19. This increase, as shown by HODL Waves, indicates a shift towards holding rather than selling, contributing to a positive outlook for XRP.
Technical Indicators Highlight Key Resistance Levels
Technically, XRP has surpassed a crucial resistance at $2.43, previously a barrier to recovery. The next resistance is at $2.59, a 5.4% rise from the current price. Breaking this level could pave the way to targets of $2.81 and $3.10, aligning with Fibonacci levels.
However, the Money Flow Index (MFI) reflects declining buying pressure since October 6, indicating weak retail participation. A sustained increase in buying activity is necessary for the bullish scenario to materialize fully.
If XRP fails to maintain above $2.43, a drop below $2.27 could negate the bullish outlook, potentially leading to declines towards $2.08 and $1.76.