XRP Holders Quietly Build Positions In A Pattern That Echoes Earlier Cycles

After experiencing a slight upward push a few days ago, the price of XRP has pulled back as volatility slowly takes over the broader cryptocurrency market. However, on-chain data reveals an interesting story about investors, who appear to have entered an accumulation phase, scooping up the altcoin at a rapid rate that rivals past cycles.

A Cycle Déjà Vu For XRP

Buying activity is starting to heat up for XRP, but investors and traders seem to be entering a familiar phase. While these investors continue to accumulate the leading altcoin, their buying patterns on the network closely resemble those seen in the past. 

Glassnode, a popular on-chain data analytics platform, disclosed this pattern after examining the XRP Realized Price by Age (7-day Moving Average) metric. Specifically, the XRP Realized Price by Age is a key metric that determines the average price at which various cohorts of holders, divided by the length of time they have owned their tokens and last moved them.

As the price of XRP fluctuates, the chart shows that short-term holders are steadily building positions. This type of silent accumulation has been seen in the past when conviction-driven capital absorbs supplies before wider market notice, making it a critical period for the altcoin.

According to the data analytics platform, the current market structure for XRP is showing a striking resemblance to that of February 2022. A clear look into the chart reveals that active investors over the weekly to monthly timeframe window are now accumulating strongly, suggesting that bullish sentiment is returning toward the token.

One interesting thing about this accumulation is that it is happening below the cost basis of wallet addresses holding the altcoin between 6 months and 12 months. In the meantime, top purchasers continue to face increased psychological strain as long as this structure remains in place.

Why You Should Be A Patient Holder Of The Asset

Should this accumulation persist, the action is likely to lay the groundwork for another push higher. However, some investors remain skeptical about another upward move, especially to a new all-time high.

Crypto expert Bird has outlined the potential for XRP to experience a rally to a new all-time high, attributing it to the token’s design and growing role in the financial sector. The analyst stated that XRP is emerging as the foundation of the new financial system, not just another speculative asset.

Currently, the token has become a means for liquidity, payments, tokenization, and real-world use. “You don’t accidentally end up with something like this. Ripple has created something special and world-changing,” the expert added.

Bird stated that these kinds of assets only occur once in a lifetime, while encouraging investors to seek more insights about the token. This is because most people only become aware of them after the shift has already taken place.