The price of XRP has managed to recover significantly, breaking above the US$2 level as momentum strengthens in the broader cryptocurrency market. Improved risk sentiment has also supported this movement, but the rise of XRP is not only driven by market conditions.
The ability of this altcoin to return to the US$2 level also allowed XRP to temporarily surpass BNB in market capitalization rankings. This development marks a resurgence of investor interest after weeks of consolidation.
However, maintaining this position depends on sustainable structural support, not just momentary speculative flows.
XRP Holders Show Strength
On-chain data shows that over 500 million XRP has just been moved to an escrow mechanism designed to lock the supply until 2028. This action removes over US$1.1 billion XRP from circulation. The supply reduction also alters market conditions by limiting liquidity when demand is rising.
Escrow-based supply keys usually have a greater impact on price when demand remains stable. XRP continues to receive consistent attention from institutions and business players.
With the number of tokens available for trading becoming increasingly scarce, even a small increase in demand can trigger a significant price reaction, creating the potential for a supply shock.
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The macro momentum indicator also increasingly reinforces the bullish narrative. The net position change metric of HODLers shows that long-term holders are starting to accumulate again. Throughout the last week, wallets classified as LTH consistently increased their XRP balances.
This accumulation marks a clear reversal from the stable selling pressure that persisted for almost a month. Long-term holders usually reduce exposure during uncertainty, then re-enter when confidence has recovered. Their buying movement now reflects confidence in the continuation of XRP's price increase, not just a short-term price spike.
Old wallet activity often provides structural support during rallies. Holders like this tend not to sell aggressively during corrections, thus reducing volatility on the downside.
As LTH accumulation increases, price stability also improves, allowing XRP to build a higher support level with a smaller risk of sharp corrections.
XRP price rose 6.7% in the last 24 hours, trading around US$2.00 at the time of publication. While it has successfully captured this psychological level, further confirmation is still needed. XRP must secure the US$2.00 level as support to maintain bullish momentum and avoid a false breakout.
The nearest resistance is at US$2.03. If there’s a strong move above this level followed by consolidation, a bullish continuation pattern will be confirmed.
If breached, XRP could continue its rally to the US$2.10 area, where there is additional liquidity as well as a historical resistance zone.
Nevertheless, there remains a risk of decline. Short-term holders who have been waiting for nearly three weeks for a profitable exit opportunity may start to realize profits.
If selling pressure increases, XRP could drop back to US$1.93. If this support level is lost, XRP price is vulnerable to plummet to US$1.86, thereby negating the bullish scenario and reverting to a neutral or bearish outlook.
