XRP’s Rally Fuelled by Short-Term Holders: Is a Major Breakout Imminent?

A significant shift in on-chain dynamics is signaling a potential major rally for XRP (XRP). While a previous price surge was deemed unsustainable, a new analysis from BeInCrypto and other sources reveals a different story: a surge in accumulation by short-term holders (STHs) is driving the recent price increase, suggesting that a more powerful and sustained upward movement could be on the horizon.

A 38% Jump in Short-Term Holder Accumulation

The most compelling data point for XRP’s recent performance comes from on-chain analytics. According to Glassnode, a key investor cohort—short-term holders, defined as those who have held their assets for less than three months—has aggressively expanded its positions. Over the past month, this group has increased its holdings by an impressive 38%. The Power of STHs: While long-term holders are the backbone of a crypto asset, the actions of STHs are crucial for influencing near-term price action. Their aggressive accumulation signals a growing confidence among active traders, creating the necessary momentum to push the price past critical resistance levels.A Supply-Side Squeeze: This consistent buying trend could lead to a supply squeeze, where a decrease in the available supply on exchanges, combined with rising demand from new entrants, drives the price higher. This is a classic recipe for a significant price run.

Technical Indicators Reinforce the Bullish Outlook

The on-chain accumulation is not the only bullish signal for XRP. The token’s price action has also provided strong technical confirmation of a potential breakout. Trendline Breakout: XRP has successfully broken above a key three-month descending trendline resistance on its daily chart. A breakout from such a long-standing pattern is a powerful technical signal that the downtrend has ended and a new upward trajectory is beginning.RSI and MACD Signals: The Relative Strength Index (RSI) readings remain in a healthy range, indicating strong demand without being overbought, which leaves plenty of room for further upside. Additionally, the Moving Average Convergence Divergence (MACD) has sustained a "buy" signal, further bolstering the bullish narrative.

Price Outlook and Key Targets

The combination of on-chain accumulation and a strong technical breakout paints a highly optimistic picture for XRP’s price in the near term. Immediate Target: A sustained buy-side pressure could push XRP to breach the $3.22 resistance level.All-Time High Retest: If the momentum continues and XRP can break through subsequent resistance, analysts believe it could retest its previous all-time high of $3.66, a level reached in July.Potential Risks: While the outlook is bullish, short-term corrections remain a possibility, especially if profit-taking takes place or if derivatives leverage overheats.

📌 Final Thoughts

XRP's recent price surge, backed by a significant increase in accumulation from short-term holders and supported by strong technical indicators, suggests that the token is now on a more stable and powerful path to recovery. Unlike previous rallies driven by speculative hype, this one appears to be supported by tangible market action from a key trading cohort. The coming weeks will be a major test of whether this renewed momentum can propel XRP back to its all-time highs and beyond.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.