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XRP has lately been a subject of considerable interest due to the growth of its positions. The statistics indicate that the percentage of the circulating supply held at addresses with 1 million to 10 million XRP has risen to 10.6%, compared to 9.8% at the beginning of July.
Analysts perceive this as a factor indicating confidence in the long term because whales tend to make decisions based on long-term market trends instead of focusing on short-term fluctuations.
Alongside this accumulation, derivatives market activity has also surged. The volume of trading increased by 119.74% to $12.58 billion, whereas the open interest went down by 0.90% to $8.27 billion.
Analysts indicate this may signify a rise in the number of players in the market and the closure of positions due to increased volatility on leveraged positions. However, institutional-level inflows indicate that XRP is a viable product on the market in times of crisis.
XRP prices experienced high volatility as the token plunged to a low of $2.82 after a sell-off. The asset has settled back around $2.95, and traders are watching the resistance level of around $3.10. A longer-term break above this level will confirm a potential bullish continuation pattern, with targets set at $3.40 and $4.05 in the near term and even at a far-off estimate of up to $8.00
However, the $3.05 support zone has also proven critical. Looking at the recent downturn, XRP has lost $3.34 to $3.10 in a single day with a dramatic increase in trading volume, an indicator of forced selling.
Despite that pressure, the lowest level of $3.05 to $3.09 was solid after several retests, indicating that there are buyers interested in the highest levels. As this support falters, the analysts caution of future falls to $2.97 and $2.72.
Macroeconomic factors have also impacted sentiment around XRP. Due to the recent dovish stance of the Federal Reserve, risk assets, including cryptocurrencies, have been given a boost. Increased liquidity expectations have boosted sentiment among investors, although analysts caution that the move above $3.10 will still need a strong impulse to sustain buying power.
Besides macroeconomic factors, adoption-related developments contribute to the market mood. This trend attracted more attention when Gemini announced the limited version of the Gemini credit card with an XRP edition.
The product features a 4% cashback in XRP on selected purchases and offers a simple mechanism for consumers to gain exposure to the token. Ripple has called the initiatives a crucial measure to expand mainstream accessibility and diversify the uses of digital assets.
Also Read: XRP News Today: XRP Struggles Amid Volatility, Can ETFs or Institutional Backing Revive Its Price?
