XRP, the third-largest cryptocurrency by market cap, is in a state of consolidation after reaching its all-time high. The current situation points to a potential breakout at the $3.20 support level.
XRP's Consolidation and the $3.20 Level
After reaching an all-time high of $3.65 mid-month, XRP has stabilized, forming higher lows. The current price fluctuates between $3.16 and $3.22, with resistance at $3.23. Consequently, XRP has pulled back to $3.15, and holding the $3.20 level will be critical for the next rise towards the psychological level of $3.50.
Increased Accumulation Among Investors
Over the past three days, XRP has experienced a dramatic surge in inflows, with investors accumulating 163 million tokens worth approximately $519 million. This data from Glassnode is interpreted as institutional and whale activity, moving holdings off exchanges, indicating long-term positioning. Furthermore, a substantial decrease in exchange reserves is considered a bullish sign since reduced exchange liquidity often precedes price support. Key on-chain metrics also emphasize fundamental strength, as the declining NVT ratio may suggest that the asset is undervalued relative to actual usage.
Conclusion
The accumulation of 163 million XRP tokens worth $519 million over three days reflects growing investor confidence amid reduced liquidity. With declining exchange balances, low NVT, and bullish chart patterns, the setup appears favorable for a potential XRP breakout if the key resistance zone at $3.23 is breached.
Amid decreasing liquidity and rising market activity, XRP may demonstrate growth if the resistance zone is overcome.
