XRP has recently shown promising signs of recovery, having regained 50% of the losses from earlier declines. Trading at $2.29, the altcoin is positioned just under the key resistance of $2.33.
To maintain this upward momentum, XRP will need ongoing support from investors, which it seems to be gaining.
XRP Investors Are Keeping Their Cool
The Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) indicator highlights that long-term holders (LTHs) are currently sitting on profits. This is crucial for the price action of XRP, as LTHs tend to avoid selling when their profits increase. Their conviction in holding onto their positions provides stability and support for the price.
SponsoredHistorically, when the LTH NUPL indicator crosses into the Euphoria threshold, it often leads to a surge in price. This signal has prompted rallies in the past, and many analysts believe that XRP could see a similar trend if the current conditions continue. As the LTHs remain committed, the price could continue to push upward.
In terms of macro momentum, the Price DAA Divergence indicator is currently flashing a buy signal. This divergence shows that both the price and the number of daily active addresses (DAA) are increasing, signaling growing investor participation.
The increasing number of active addresses indicates that traders are increasingly confident in XRP’s future prospects. Combined with the price rise, it is likely that this could help drive the altcoin’s continued recovery.
XRP Price Needs To Find A Crack
XRP price has seen a 13% increase over the last four days, trading at $2.29 today and recovering 50% of the 22% losses it experienced recently. The altcoin is currently testing the key $2.33 barrier, which it needs to breach for further upside potential. If it successfully surpasses this resistance, XRP could see a move toward $2.70, fully recovering its recent losses and pushing the price even higher.
The factors discussed earlier suggest that XRP has the momentum needed to continue its recovery. The support from LTHs and the buy signals from technical indicators provide a strong foundation for further price increases.
However, if XRP fails to breach the $2.33 resistance and falls back down to $2.14 or lower, the bullish outlook could be invalidated. A drop to $1.94 would wipe out recent gains and put XRP back on a bearish path. Therefore, maintaining support at $2.33 is crucial for sustaining the current upward trend.
