XRP Consolidation Signals Next Move

What to Know:

• XRP is consolidating near $1.80, a key support level watched by traders.
• Broader market context includes accumulation trends and ETF inflows, despite recent price declines.
• The $1.80 level is critical for maintaining bullish momentum and XRP’s liquidity profile.

XRP is currently trading around $1.81, experiencing a consolidation phase that has captured the attention of market analysts. Despite a recent 5% dip over the past day and a 6% decline for the week, historical patterns and accumulation trends suggest a potential for upward movement. The $1.80 support level is now pivotal in determining XRP’s short-term trajectory.

Prolonged Consolidation Phase

XRP’s current consolidation phase is one of the longest in its history, lasting approximately 434 days. Previous similar phases in 2016, 2018, 2020, and 2023 were followed by significant breakouts. The token is currently trading between $1.80 and $2.00, with traders closely monitoring whether it can maintain support and attempt to breach the $2.00 resistance. This pattern mirrors earlier phases that preceded sharp rallies, suggesting a potential for similar future movement.

Critical Support Level at $1.80

Analysis indicates that XRP’s price action hinges on the $1.80 support level. A sustained hold above this level could pave the way for another breakout attempt. Conversely, a drop below $1.80 might trigger a deeper pullback before any substantial recovery. The ability of bulls to defend this level is crucial for maintaining a positive outlook and preventing further downside.

Accumulation by Large Holders

Since the beginning of the year, the number of XRP wallets holding at least one million tokens has increased by 42. This marks the first rise in “millionaire” wallets since September 2025. Despite a roughly 4% price decrease during the same period, the accumulation suggests strong confidence among large holders. This accumulation trend may indicate a strategic positioning for future gains, reinforcing the asset’s resilience.

ETF Inflows Indicate Institutional Interest

XRP-linked ETFs have experienced consistent inflows, reflecting sustained institutional interest. January saw net inflows of $91.72 million, following $666 million in November and $499 million in December. This steady demand from institutional buyers suggests a long-term bullish outlook, despite the current price consolidation. The continued investment underscores the perceived value and potential of XRP among institutional investors.

Market Structure and Liquidity

The ongoing consolidation and accumulation trends have significant implications for XRP’s market structure and liquidity. A successful defense of the $1.80 support level could lead to increased liquidity as buyers step in, driving the price upward. Conversely, a failure to hold this level may result in decreased liquidity and further price declines. Monitoring these dynamics is essential for understanding XRP’s potential for future growth and stability.

In conclusion, XRP’s current consolidation phase presents both challenges and opportunities. The $1.80 support level is critical for maintaining bullish momentum, while accumulation trends and ETF inflows indicate sustained institutional interest. Traders and investors should closely monitor these factors to assess XRP’s potential for a future breakout.

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Source: Original article