Ripple update: XRP shows resilience in recent crypto market sell-off
- XRP investors held onto their tokens despite the crypto market sell-off last week.
- The resilience among investors could be due to potential bullish catalysts in 2025.
- XRP could retest its all-time high resistance if it breaks above the upper boundary of a key symmetrical triangle pattern.
Ripple's XRP is up 6% on Tuesday following a series of on-chain metrics, which reveals investors in the remittance-based token held onto their assets despite the wider crypto market sell-off last week.
XRP investors show resilience in recent crypto market sell-off
XRP investors have remained calm despite last week's market sell-off triggered by the Federal Reserve's decision to have only two rate cuts in 2025.
Unlike most other cryptocurrencies, where investors rapidly shed their holdings, most XRP investors held onto their tokens, as depicted by the downtrend in the XRP Dormant Circulation across all coin age cohorts. This metric spikes when investors sell off their tokens rapidly and declines when investors hold onto their investments.
 Dormant [18.36.20, 24 Dec, 2024]-638706586098406783.png)
XRP Dormant Circulation & Mean Coin Age. Source: Santiment
A similar trend is evident in the XRP Mean Coin Age metric, which measures the average number of days all XRP tokens stayed in their current addresses. This metric has slowly increased since December 12, indicating XRP investors are slightly tilted toward accumulation rather than selling.
Notably, whales have accumulated over 260 million XRP tokens in the past five days.
 Whale [18.37.28, 24 Dec, 2024]-638706586715368626.png)
XRP Supply Distribution. Source: Santiment
The bias toward accumulation comes amid XRP investors holding onto an average profit of over 300% in the face of a crypto market sell-off. This shows growing resilience among XRP investors even with wider negative sentiments in the crypto market.
 Sentiment [18.38.19, 24 Dec, 2024]-638706587307682098.png)
XRP Weighted Sentiment. Source: Santiment
The holding attitude could be due to upcoming potential bullish catalysts, including expectations of an XRP ETF in 2025 and President-elect Donald Trump and a new Securities & Exchange Commission (SEC) administration assuming office on January 20.
On the contrary, the less distribution XRP experienced could be because investors already booked significant profits between November 30 and December 17, as evidenced in the chart below.
 Profit & Loss [18.39.27, 24 Dec, 2024]-638706588034959233.png)
XRP Network Realized Profit/Loss. Source: Santiment
XRP's uptrend resumption dependent on breakout above key trendline
XRP saw $6.6 million in liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $2.02 million and $4.58 million, respectively.
After seeing a rejection near the $3.00 psychological level on December 3, XRP is consolidating within a symmetrical triangle pattern. The remittance-based token is now attempting a move upward after bouncing off the triangle's support trendline near $2.1.
XRP/USDT daily chart
If XRP overcomes the upper boundary of this triangle pattern, it could rally to test its all-time high resistance at $3.55. However, a decline below the trendline's lower boundary could spark a massive decline toward the $1.35 support level. The $1.96 level and 50-day Simple Moving Average (SMA) could serve as crucial support levels if such a scenario plays out.
The Relative Strength Index (RSI) momentum indicator is slightly above its neutral level, indicating bullish momentum is mildly dominant. Meanwhile, the Stochastic Oscillator (Stoch) is just below its neutral level, indicating a cross over to bullish dominance is imminent.
A daily candlestick close below $1.35 will invalidate the thesis.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
