- XRP’s $1.78 mark is a strong support where buyers are defendingas the approach upper resistance, a break below could signal deeper weakness.
- The $2 resistance is a tough hurdle that looms above for XRP; clearing it could spark a rapid price rally if supported by strong volume momentum.
- XRP’s long-term outlook is shaping up as accumulation, and the gold/XRP ratio suggests capital rotation and potential for expansion.
XRP price is compressed between support at $1.78 and resistance at $2.00, and is trading at $1.95. This marks a 2.80% increase today. However, despite this and a 24-hour trading volume of $4.26 billion, the asset is down by over 7% over the past week.
These price movements have drawn a lot of attention from both technical analysts and traders. Conversely, traders are closely watching to see if XRP breaks through its resistance or consolidates.
Analysis of the UTXO Realized Price Distribution (URPD) provides an insightful map of where large XRP holders acquired their tokens.
Support at $1.78: A Strong Defense Zone
The $1.78 level represents a key area of support where a substantial concentration of holders bought the token.
On the URPD chart, this zone shows a dense concentration of XRP in the hands of long-term holders. This suggests that many of these holders are unlikely to sell unless there’s a significant broad market downturn.
In case the price revisits $1.78, these holders are expected to defend their positions actively. They will potentially buy more if the price dips into this range.
In the past, this behavior created a strong demand for XRP and prevented the price from falling. Because of this, if sellers break below $1.78, it would lead to further declines.
A strong defense of $1.78 confirms that bulls are more likely to maintain the upward trajectory. Price action around this level will determine if the market continues to favor higher prices.
The Battle for Momentum
XRP faces its first real resistance zone between $1.97 and $2.00. In the past, this was where a notable concentration of holders bought back XRP during previous price rallies.
This range represents an overhead psychological barrier that can lead to selling pressure as holders attempt to break even.
Over the years, XRP has frequently stalled at the $2.00 resistance as traders resulted to aggressive profit-taking here. This dynamic suggests that $2.00 is a critical level that needs to be surpassed for XRP to sustain momentum.
In this case, XRP would absorb the overhead supply and confirm the market transition from consolidation to expansion.
Gold/XRP Ratio and Long-Term Rotation
The behavior of XRP is not just shaped by price levels within the asset itself but also by its broader market dynamics. Notably, the GOLD/XRP ratio is transitioning into a new critical phase, highlighting a critical period of accumulation.
The years of sideways movement reflect a phase where capital was quietly absorbed, with minimal volatility in the market. This is often where smart money enters, waiting for the eventual breakout.
The ratio chart has begun to show signs of potential expansion. This shift suggests a rotation of capital from gold, a traditional store of value, into XRP, a utility-driven digital asset.
Such a rotation is not speculative. Rather, it represents a fundamental change in how value is being allocated across markets.
If this shift continues, XRP could experience significant price appreciation as institutional and retail investors rotate capital back.
XRP $1.78 support and $1.97 to $2.00 resistance are essential for understanding the asset’s potential trajectory. These levels are deeply rooted in market psychology and on-chain data.
The GOLD/XRP ratio also suggests that XRP’s future performance may not just depend on the asset itself but on broader market rotations.