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The XRP price has struggled to make a decisive recovery in recent weeks, but continues to defend a critical support level. The altcoin avoided a deeper collapse despite repeated tests of lower price zones. This persistence indicates the presence of underlying accumulation.
Investor sentiment was initially cautious. However, from spot markets to derivatives, traders seem to be preparing for the possibility of a rebound.
XRP is not very underwater
The net unrealized gains and losses, or NUPL, indicate that XRP is in a capitulation phase, but not in a deep way. The indicator is currently moving close to the zero line. This position reflects that losses among holders are decreasing, approaching neutral conditions rather than achieving maximum losses.
History has shown that XRP remains in the yield zone for long periods, sometimes up to a full month. These stages are often preceded by rebounds after selling pressure drops. The current period is approaching the one-month mark, indicating that a turning point may be coming soon.
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How will XRP traders and holders react?
The average age of the coin, or MCA, provides additional insight into the behavior of holders. Faced with a potential refund, long-term holders of XRP seem to prefer accumulation to distribution. High MCA values ​​often indicate that coins are aging in wallets rather than being traded or sold.
Barring a slight pullback, long-term holders of XRP will maintain a constructive stance. The continuous accumulation reduces the circulating supply pressure. The continued faith of these investors often supports a structural price recovery over time.
The data of the derivatives market reflects the evolution in the trading of the spot market. Funding rates for XRP have seen notable changes over the past three weeks. Previously very negative readings have moved into moderately positive territory.
Positive funding rates reflect the dominance of long versus short positions. This dynamic indicates a boost in the confidence of traders. Increasing long exposure can generate upward pressure while increasing demand via leveraged positions.
XRP price remains above the support level
XRP is trading at $1.43 at the time of writing, approaching the 38.2% Fibonacci retracement level. The 23.6% retracement, which is often considered a support level in a bear market, remains stable. Continuity in trade above this limit promotes structural stability.
Holding above the bear market support level reflects limited downward pressure in the near term. If confidence continues to improve, XRP could challenge the resistance level at $1.53. A successful rally could push the symbol towards $1.62. The conversion of the 61.8% Fibonacci level to support confirms the beginning of the recovery phase.
Weak economic conditions on the other hand can delay the upward progress. Failure to cross the $1.53 level could extend the period of price consolidation. Continuous range trading will invalidate the bullish thesis in the short term. Without an increase in demand, XRP may remain low until the overall momentum of the cryptocurrency market improves.
