The price of XRP is currently fluctuating around the $2.08 level, with rising volatility increasing the risks of it dropping below $2. However, indicators show that long-term holders (LTHs) are increasing their accumulation, reflecting their confidence in XRP's future potential and providing support against sharp fluctuations.
Key Points:
1. Volatility and Address Activity:
- XRP is witnessing an increase in the number of active addresses, indicating potential significant price volatility.
- This activity may lead to rapid movements upwards or downwards depending on selling or buying pressure.
2. Accumulation of Long-Term Holders (LTHs):
- The "Liveliness" indicator suggests that long-term XRP holders are increasing their holdings, supporting price stability.
- This behavior reflects investor confidence in the currency's future, despite short-term challenges.
3. Support and Resistance Levels:
- The current support is at $2.08, and if broken, the price may drop to $2 or lower.
- If the price rebounds from $2.08, it may target $2.13, and then $2.23 if resistance is broken.
4. Broader Market Impact:
- General market conditions, such as geopolitical tensions and ETF fund delays, affect XRP's performance.
Conclusion:
Despite short-term risks, XRP remains supported by long-term investor confidence. The upcoming price movement will determine whether it drops below $2 or rebounds toward higher levels.