XRP rise 5%—Is This the Beginning of a Comeback or Just a Temporary Recovery?

XRP has increased by 5% in the past 24 hours, temporarily escaping the bearish pressure that has pulled the price of this currency down over the past week. While the recent price increase reflects broader improvements across the cryptocurrency market, on-chain data shows that the specific trends of each asset could drive the recovery of XRP. XRP Sentiment Changes as Buy Pressure on Futures Contracts Increases An important indicator showing this change is the buy/sell ratio of XRP, which closed in the green yesterday. According to CryptoQuant, this is the first time this indicator has closed in positive territory since July 10, confirming a positive shift in market sentiment.

The buy-sell ratio of an asset measures the ratio between the volume of purchases and sales in the futures market for that asset. A value above 1 indicates that the buying volume is greater than the selling volume, while a value below 1 indicates that many futures traders are selling their held assets. The buy/sell ratio of XRP has slightly increased, indicating that the selling pressure in the futures market is slowing down. This suggests that the bearish sentiment among futures market participants has weakened — a trend that, if maintained, could further support the upward momentum of XRP. Another notable trend is the steady decline in the activity level of XRP since the beginning of August. According to Glassnode, this index closed on August 3 at 0.8150, down from 0.8152 recorded on August 1.

The Liveliness index tracks the movement of tokens that have been held long-term/are dormant. This index is calculated by measuring the ratio of the number of days coins are destroyed for an asset compared to the total number of days the coins have been accumulated. When this index increases, it means that long-term holders (LTH) are moving or selling their coins. On the other hand, when the price falls like this, profit-taking activity may slow down as key holders return to accumulation mode after a period of selling pressure. Will the Resistance Level Stop the Uptrend or Trigger a Fall to $2.87? The combination of falling sell-offs and increasing demand for futures contracts could help XRP stabilize above the $3 price level in the near future. If accumulation is strengthened, this altcoin could extend gains to $3.22. A successful breakout of this barrier could open up opportunities for a rally to $3.33.

If this does not happen, this altcoin could reverse its uptrend and fall to a low of $2.87, continuing the recent bearish trend.