XRP Shows Resilience During Recent Crypto Market Liquidation

• XRP investors have held on to their tokens despite the crypto market’s sell-off last week.
• Investor resilience could be due to possible bullish catalysts in 2025.
• XRP could retest its all-time high resistance if it breaks the upper boundary of a key symmetrical triangle pattern.

Ripple’s cryptography last week.

XRP Investors Show Resilience During Recent Crypto Market Massive Sale

XRP investors 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, in which investors quickly dumped their holdings, most XRP investors held on to their tokens, as shown by the downward trend in XRP’s dormant circulation across all cohorts age of the parts. This metric increases when investors quickly sell their tokens and decreases when investors hold on to their investments.

Dormant circulation of XRP and average coin age. Source: Santiment

A similar trend is evident in the XRP Mean Coin Age metric, which measures the average number of days that all XRP tokens have remained at their current address. This metric has slowly increased since December 12, indicating that XRP investors are slightly inclined toward accumulation rather than selling.

Notably, whales have accumulated over 260 million XRP tokens in the last five days.

XRP Supply Distribution. Source: Santiment

The tilt toward accumulation comes as XRP investors hold on to an average profit of over 300% in the face of a sell-off in the crypto market. This shows growing resilience among XRP investors, even with broader negative sentiments in the crypto market.

XRP Weighted Sentiment. Source: Santiment

The hold attitude could be due to potential upcoming bullish catalysts, including expectations for an XRP ETF in 2025 and the inauguration of President-elect Donald Trump and a new Securities & Exchange Commission (SEC) administration ) on January 20.

Rather, XRP’s lower distribution could be because investors have already made significant profits between November 30 and December 17, as shown in the chart below.

The XRP network made profits/losses. Source: Santiment

Resumption of XRP uptrend depends on a breakout above the key trendline

XRP saw $6.6 million in liquidations over the past 24 hours, according to Coinglass data. The long and short positions liquidated amounted to $2.02 million and $4.58 million, respectively.

After seeing a rejection near the psychological $3.00 level on December 3, XRP is consolidating in a symmetrical triangle pattern. The remittance-based token is now attempting to advance after bouncing off the triangle support trendline near $2.1.

XRP/USDT daily chart

If XRP breaks 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 lower boundary of the trendline could trigger a massive decline towards the $1.35 support level. The $1.96 level and the 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 that bullish momentum is slightly dominant. Meanwhile, the Stochastic Oscillator (Stoch) is sitting just below its neutral level, indicating that a shift into bullish dominance is imminent.

A daily candlestick closing below $1.35 will invalidate the thesis.