Home / Business and Economy / XRP Price Stuck: Bullish Signal Ignored
XRP Price Stuck: Bullish Signal Ignored
5 Dec
Summary
- XRP price remains trapped in a narrow trading band since mid-November.
- A key on-chain metric, dormancy, hit a three-month high, usually signaling recovery.
- Long-term XRP holders are actively selling, counteracting positive on-chain signals.
The XRP price is currently experiencing a period of stagnation, trading within a tight range observed since mid-November. This lack of upward momentum persists even as other major cryptocurrencies like Bitcoin and Ethereum show weekly gains. A notable on-chain indicator, dormancy, has reached a three-month high, typically a precursor to a price recovery, suggesting reduced selling pressure from older XRP tokens.
However, this bullish on-chain development is being overshadowed by the actions of long-term holders. Data from HODL Waves indicates a consistent distribution of supply from older age cohorts, including those holding XRP for 6-12 months and 1-2 years. This outflow from traditionally stable holders weakens the market's underlying strength and caps any potential upside.
For XRP to escape its current trading band, which is defined between $1.81 and $2.28, a decisive daily close above $2.28 is required. Until long-term holders cease their selling and a clear break above this resistance level occurs, the XRP price is likely to remain range-bound, despite the encouraging dormancy metrics.
