How are you all? I hope you are all well and having a great time. I always try to keep up with the current market situation, and today I came across some interesting data on XRP that I couldn’t help but share with you.
I have been closely monitoring XRP’s charts and on-chain movements for the past few days. Currently, the price of XRP is hovering around $2.08. The chart pattern looks like a major breakout is imminent, but it seems to be stuck somewhere. Why is the price stuck here? I went a little deeper and tried to find out the reasons behind it.
The first thing that came to my attention in my research was the state of spot ETFs. Last week, the XRP ETF saw the lowest inflow of money since trading began. Net inflows for the week ending January 9 were just $38.07 million. This is down about 84% from the peak of $244 million seen in late November.
It seems to me that the slowdown in ETFs and the decline in XRP price momentum are intertwined. We are seeing a bullish‘inverse head and shoulders’ pattern on the chart, which is valid. However, the lack of ETF support has made it a bit difficult to break the neckline.
But don’t worry, there is an upside to the coin. When I checked the activity of the holders, I was quite surprised. On the one hand, when institutional investments (ETFs) have come to a standstill, long-term holders or large investors have started buying XRP aggressively.
Between January 9th and 10th, in just 24 hours, holders’ net position increased from 62.4 million XRP to 239.5 million XRP. That’s a nearly 300% increase in a single day! This is not a simple trade; it’s clearly an accumulation. According to my analysis, this massive buying has filled the gap in ETFs and kept the price firmly at $2.08.
Now the question is, where can the price turn from here? I have identified the supply zones or resistance areas. The first major resistance or, supply cluster, is between $2.14 and $2.15. There are about 1.88 billion XRP bought here. So for the price to go higher, it has to break this wall first.
The next and most important level is $2.48 to $2.50. This is basically the neckline of the pattern. There are also about 1.62 billion XRP stuck here. My analysis says that if XRP can somehow break the $2.50 level and stabilise there, we could see a 34% upside move from here.
In short, the market is in a wait and watch, mode right now. Below $2.06 is our critical support. And to move higher, it is essential to break through the $2.15 and then the $2.50 levels.
Long-term holders are showing their strength; now we just have to wait for new ETFs or volume to come in. If buyers can break through the $2.15 barrier in the next few days, then I believe we will see a positive move very soon. But for now, it would be wise to be patient and watch the levels.
Stay well, everyon. Seee you in the next update!
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