XRP maintained a mostly sideways trading pattern last week. It is facing resistance at $3.34 and support at $3.11.
However, new on-chain data suggests that this altcoin may be quietly preparing for a significant upward movement. This analysis contains the details.
XRP Selling Pressure Eases
According to glassnode, the percentage of XRP's circulating supply held on centralized exchanges has recently decreased. Currently at a monthly low of 5.66%, it has dropped by 3% since August 9th.
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When the percentage of an asset's circulating supply held on centralized exchanges decreases, immediately available tokens reduce. This indicates that investors are moving their holdings to long-term storage, reflecting increasing confidence in the asset's future price performance.
For XRP, the drop to a monthly low suggests that selling pressure is easing. This is significant considering the token's current sideways trend. Decreased sell-side liquidity can provide conditions for a short-term breakout.
Additionally, XRP's liquidity heatmap shows capital concentrated just above the current price level at $3.4.
The liquidation heatmap identifies price levels with a high likelihood of leverage positions being liquidated. Historically, such capital clusters draw short-term upward momentum, as traders attempt to utilize these liquidity zones.
Therefore, this can act as a price magnet, potentially pulling XRP higher to trigger liquidations and fill orders.
XRP Eyes $3.66 Rise Amid Market Adjustment Pressure
Today's broad market decline has XRP trading near the $3.11 support line. A strong bullish bias could drive the uptrend to $3.34. Successfully breaking this barrier could enable further rise to $3.66.
Conversely, if XRP's consolidation does not hold and the token falls below the channel, downward momentum could dominate.
In this case, XRP's price could drop below the key psychological level of $3, potentially testing $2.98 before finding balance.
