XRP has maintained a mostly sideways trading pattern over the past week. It faces resistance at $3.34 while finding support at $3.11.
However, new on-chain readings suggest that the altcoin may be quietly preparing for a significant upward move. This analysis holds the details.
Selling Pressure Eases on XRP
According to Glassnode, the percentage of XRP’s circulating supply held on centralized exchanges has fallen in recent days. Now at a monthly low of 5.66%, it has dropped by 3% since August 9.
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When the percentage of an asset’s circulating supply on centralized exchanges declines, fewer tokens are readily available for immediate selling. This reduction in exchange balances signals that investors are moving their holdings to long-term storage, reflecting increased 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 given the token’s current sideways trend, as diminished sell-side liquidity may provide the conditions for a near-term breakout.
Further, XRP’s liquidity heatmap shows a dense concentration of capital just above its current price level, at $3.4.
Liquidation heatmaps identify price zones where clusters of leveraged positions are likely to be liquidated. Historically, these capital clusters attract short-term bullish momentum as traders look to exploit these liquidity zones.
Therefore, this could act as a price magnet, drawing XRP higher to trigger liquidations and fill these orders.
XRP Eyes Upside to $3.66 as Market Faces Pullback Pressure
Today’s broader market decline has pushed XRP to trade near support at $3.11. Strengthening bullish bias could drive an uptrend toward $3.34. A successful breach of this barrier could open the door for extended gains to $3.66.
On the other hand, if the support floor holding XRP’s consolidation fails and the token falls below the channel, bearish momentum could take over.
In such a scenario, XRP’s price could fall below the key $3 psychological level. It may even test $2.98 before finding some balance.
Disclaimer
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