The XRP price has recovered significantly and risen above the 2 USD mark. The stronger sentiment in the overall crypto market helps with this. Nevertheless, it is not only the market conditions that make XRP so in demand right now.
The fact that the altcoin is now back at 2 USD has led to XRP temporarily surpassing BNB in market value. This has rekindled interest among investors after several weeks of sideways movement.
Whether XRP can maintain this position depends, however, on whether there is continued support from the market and not just on short-term speculation.
XRP holders prove strength
On-chain data shows that more than 500 million XRP were recently held in a so-called trust. These XRP will remain locked until 2028. This removes over 1 billion USD worth of XRP from trading. When fewer XRP are available, the price can fluctuate more strongly in times of increasing demand.
Treasuries with locked coins usually have a greater impact on the price when demand remains stable. XRP continues to benefit from the constant interest of companies and institutional investors.
Because fewer tokens are available now, even slight increases in demand can lead to noticeable price movements. This creates the chance for a supply shock.
Major trends in the markets further support the bullish picture. The 'HODLer net position change' shows that long-term holders are buying XRP again. In the last week, wallets considered long-term holders have consistently accumulated more XRP.
This accumulation is a clear reversal after almost a month of persistent selling pressure. Long-term investors often sell when uncertainty prevails and re-enter when the market appears stronger. Their new buying interest shows that they believe in a longer price increase – and not just a quick jump.
Activities from older wallets often provide stable support during increases. They usually sell less strongly during downturns, which reduces downward movements.
The more long-term holders buy XRP, the more stable the price will be. This allows XRP to form stronger support areas, reducing the risk of sharp pullbacks.
The XRP price has risen by 6.7 percent in the last 24 hours and is currently around 2.00 USD. While reaching this mark again is an important step, clear proof is still lacking. XRP must confirm 2.00 USD as support to maintain the bullish sentiment and prevent a pullback.
The next resistance is at 2.03 USD. If XRP sustainably overcomes this area and holds there, the price increase could continue.
If this works, further increases up to 2.10 USD are possible. More liquidity lies there, and there were already important resistances before.
Downward risks still remain. Short-term investors might take profits now after almost three weeks of waiting.
If more selling pressure arises, XRP could slip back to 1.93 USD. If this support falls, pullbacks to 1.86 USD are threatened. Then the bullish trend would be over for now, and the outlook would be neutral or even slightly negative.
