Investor Confidence Drives XRP Accumulation Amid Market Uncertainty

XRP has entered a notable accumulation phase, with investors reportedly purchasing nearly 1.7 million tokens in a single month—the largest such movement in over two years. This buying spree has been interpreted as a sign of renewed investor confidence in the asset, even amid broader market uncertainty. The accumulation has coincided with XRP trading close to a key technical resistance level at $2.85. Analysts have suggested that if the price manages to break through this level, it could target $2.95 and eventually $3.07, as observed in chart patterns. The buying activity is also occurring in a context where other altcoins have shown little sign of recovery, underscoring XRP’s unique momentum.

On-chain data reveals that long-term investors are increasingly active in the XRP market. This trend supports the view that XRP is becoming more attractive to a segment of the market that typically looks for sustained growth rather than short-term speculative moves. The accumulation has been particularly pronounced on exchange platforms, reaching an unprecedented peak over the past two years. While this is a strong bullish signal, some analysts caution that the Network Value to Transactions (NVT) ratio has recently surged to its highest level in two months. A high NVT suggests that the network’s valuation may be outpacing its fundamental transactional activity. This could imply that XRP’s price might be ahead of its underlying usage metrics, potentially increasing the risk of a near-term correction.

Technical indicators also provide mixed signals. The price of XRP has risen above the $2.950 level and is currently consolidating gains. A key contracting triangle has formed on the hourly chart with support at $2.980, suggesting that further upward movement is possible if the price remains above this level. Bulls have pushed the price above the $3.00 mark, forming a high at $3.0365. If this level can be sustained, the next resistance appears at $3.050. A clear breakout from that level could push the price toward $3.120 and, potentially, $3.150. However, if the price fails to break through $3.050, a decline toward $2.980 or even $2.9150 becomes more likely.

The market’s reaction to XRP will depend heavily on whether the current accumulation can be maintained and whether the price can sustainably move above key resistance levels. While the recent buying activity suggests strong demand, the elevated NVT ratio introduces an element of caution. If network activity does not follow suit with the price increase, the market could face a period of consolidation. This scenario would reflect a common pattern in asset markets where early buyers push prices forward before broader adoption follows.

The current technical setup also shows that short-term traders are closely watching the 50% Fibonacci retracement level of the upward move from $2.795 to $3.0365. The price has already tested this level and is now trading above it. The momentum in the hourly MACD and RSI indicators remains bullish, with the RSI above the 50-level and the MACD gaining pace in the positive zone. These signals reinforce the potential for further gains, but they also highlight the need for caution should the price fall back below key support levels.