XRP accumulates over $500 million, pushing towards the resistance at $3.23

XRP needs to firmly hold $3.20

After reaching a historic high of $3.65 in mid-month, XRP is tightening its consolidation, indicating that traders are waiting for its next move, which may result in a breakout.

The third-largest cryptocurrency by market capitalization recently surged from $3.16 to $3.22, then encountered resistance at $3.23, forming a higher low.

As a result, XRP has dropped back to $3.15, seeking a solid foundation for the next move. To break through the psychological barrier of $3.50, it needs to reclaim $3.20 and break above $3.23.

Strong accumulation momentum from investors

According to data from Glassnode, XRP inflows have surged sharply in the past three days, with investors accumulating 163 million tokens, valued at approximately $519 million.

This accumulation is widely interpreted as institutional and whale investor activity gaining momentum, moving holdings off exchanges and indicating a shift towards long-term holding rather than short-term speculation.

Investors have transferred a significant amount of XRP balances from exchange wallets to private custody. Glassnode data shows that exchange reserves have decreased significantly, which is typically a bullish signal, as a drop in exchange liquidity usually precedes price support, with holders increasingly choosing to hold rather than sell.

Key on-chain indicators highlight strong fundamentals. The network value to transaction volume (NVT) ratio of XRP has dropped to a four-month low, suggesting that this asset may be undervalued relative to actual on-chain usage.

When market capitalization exceeds transaction volume, NVT usually rises, but a reverse decline indicates that network activity is staying in sync, thus proving sustained value potential.

In the perpetual contract space, XRP futures open interest has recently surged to $8.8 billion, reaching one of the highest recent historical levels, indicating new funds entering the market.

In three days, XRP tokens have accumulated by 163 million, valued at $519 million, indicating that investor confidence is continuously strengthening amid reduced liquidity.

With exchange balances declining, NVT decreasing, and chart patterns looking bullish, if it breaks through the key resistance area at $3.23 and macro conditions remain favorable, XRP could break out.