XRP shows stability at the support level of $3.11 during a broader cryptocurrency market decline. On-chain analysis suggests a potential price uplift.
Decline in Exchange Holdings
Data from Glassnode shows XRP holdings on centralized exchanges dropped to a monthly low of 5.66%, down 3% since August 9. This indicates a shift towards long-term storage from short-term trading positions. The decrease in tokens available for sale might signal possible price increases based on market behavior analysis.
Technical Factors for Bullish Scenario
Technical analysis suggests a liquidation cluster around the $3.4 level that could elicit short-term buying pressure. Historically, these liquidation zones attract interest as traders seek to benefit from the forced closure of leveraged positions. The current support and resistance levels for XRP are clearly defined, indicative of their significance to traders.
Market Structure and Price Targets
The consolidation phase for XRP observed over the past week is typical following significant price movements in the crypto markets. A break above the $3.34 resistance could lead the price toward $3.66, representing a potential 10% gain. XRP's ability to maintain support above $3.11 during the market slide showcases its relative strength compared to other digital assets, possibly leading to upward price momentum.
Current on-chain developments and technical positioning of XRP indicate a possibility for price increase following the consolidation phase. The combination of reduced exchange balances and favorable liquidation dynamics creates a basis for potential appreciation.
