Despite facing resistance at $2.40 earlier this year, XRP quickly fell back and encountered pressure again at $1.65. Multiple market observers have pointed out that its intrinsic momentum is quietly building, potentially leading to a new wave of upward opportunities. The key factors driving this trend are the shift in whale behavior and the continuous increase in XRP Ledger network usage.
According to analyst CW, the transaction frequency on the XRP Ledger has significantly risen recently, which is seen as a positive signal in the current macro environment. Typically, during market downturns, investors tend to withdraw, leading to a decline in on-chain activity; however, when transaction volumes increase against the trend, it often indicates an impending reversal in market sentiment, with prices likely entering an upward channel. This trend not only suggests that large holders are quietly accumulating, effectively alleviating short-term selling pressure, but also provides signals for retail investors to enter the market.
Meanwhile, the XRP/BTC trading pair is approaching a critical juncture. Analyst EGRAG CRYPTO noted in his report titled “Hidden Liquidity Cycle” that changes in this trading pair often reflect capital rotation from Bitcoin to mainstream altcoins. Historical data shows that whenever XRP/BTC enters a long-term accumulation zone, it is typically followed by a strong rally.
Charts indicate that the current XRP/BTC is in the previously marked “over-sold” red zone, suggesting strong bottom support relative to Bitcoin. If this trading pair breaks through the silver resistance line at approximately 0.00003600 SAT, it could trigger a new wave of upward momentum. As of the time of writing, XRP/BTC is quoted at around 0.00002000 SAT.
It is worth noting that EGRAG emphasizes that this liquidity cycle typically spans 7 to 8 years, so even if signals appear, the actual breakout may take time to develop. The market conditions seen at the end of 2024 may not immediately reoccur, but the trend direction is beginning to take shape.
