XRP Holders Are HODLing Again! Is That Really Bullish?”

In November and December 2024, XRP saw a significant jump in value. This, in turn, created a trend of profit taking

XRP price has been showing signs of recovery in recent times as the token faced a strong rejection at the $2.8 resistance. Despite this, the technical indicators are still showing signs of a downtrend, which could lead to further decreases in the coming days.

As the price of XRP continues to come under pressure at the $2 support, technical indicators are now starting to show signs of a downtrend. This is in contrast to the uptrend that was observed in the previous months, which had signaled a potential increase in price.

However, the macroeconomic environment has shifted, and with it, the cryptocurrency market has also begun to factor in a different narrative. This narrative suggests that the optimistic outlooks for the crypto market may be premature, and we could see further decreases in the coming days.

Indeed, if the bears manage to break the $2 support level, then the next crucial price point would be the $1.2 zone. This level is significant as it represents the historical resistance, which was breached in 2021 and now acts as a support.

Moreover, the Relative Strength Index (RSI) indicator has also been showing lower readings, which signals that the sellers are gaining more control. This is in line with the pessimistic outlook for the short-term, while the long-term technical indicators are still showing signs of a bullish trend for XRP.

In the long-term, the number of XRP tokens which have been inactive for more than 1 year is increasing, which might be a surprising development.

This statistic, which is available on the Glassnode platform, had been decreasing since the massive rise XRP experienced in the first months of 2025.

As such, we can deduce that investors with XRP tokens which have been inactive for 1+ years are accumulating again. According to the historical data, in the past, when this stat grew after a downtrend, the market stagnated or fell deeper.

As such, the increase in investor confidence is not always a piece of good news for short-term market movements.

Another example of such a contrast is the surge of XRP in 2018, when the coin hit its all-time high.

Data shows that during this rally, long-term holders were actively selling their XRP tokens as the value was rising. As such, when we see an accumulation beginning in February, it signals a bearish future market.

As such, from February till now, when this trend has been growing, the XRP price decreased 30%. However, this suggests that long-term investors are buying the dip, making the long-term XRP price prediction bullish.