XRP is holding its ground around the $2 mark as a cluster of on-chain and technical signals point to cautious bullishness — even as traders watch closely for short-term volatility. Why $2 matters - The Cost Basis Distribution heatmap shows heavy concentration of holder cost-basis between $1.96 and $2.00, making that band a crucial support zone. A decisive break below $1.96 could trigger deeper bearish sentiment, while the $2.15 area has recently acted as resistance after a rejection this week. (Source: AMBCrypto) Adoption tailwinds, longer-term play - Ripple’s partnership with LMAX to integrate its stablecoin RLUSD was highlighted by AMBCrypto as another building block for adoption. Such integrations are strategic and cumulative — important for long-term adoption even if they don’t immediately move price or sentiment. Accumulation vs. heat in the market - On-chain data points to accumulation: XRP has seen steady outflows from exchanges, a classic sign that holders are withdrawing coins into private wallets rather than selling. At the same time, whale inflows have been low — suggesting “smart money” isn’t exiting positions, which analysts interpret as conviction rather than capitulation. (Source: CryptoQuant) Technical backdrop and pattern setup - On the daily chart, observers flagged an inverse head-and-shoulders formation for XRP — a bullish reversal pattern that could presage a breakout if confirmed. However, traders should be mindful that patterns need volume and follow-through to validate a move higher. Risk signals: leverage and funding - A high Long/Short Ratio signals crowded longs and raises the risk of short-term volatility aimed at squeezing those positions. Analyst PelinayPA (CryptoQuant Insights) also notes that when Funding Rates flip positive and spike, markets often consolidate or endure brief pullbacks because longs pay to maintain positions — and that dynamic can produce long squeezes. At the time of reporting, Funding Rates had not yet turned sharply positive while price remained above the $2 demand zone — a setup that often marks local bottoms and suggests dips could stay shallow. A shift to positive funding in the coming days could coincide with a bullish price move. Order flow and buying pressure - Spot order-flow metrics point to aggressive buying: the 90-day Spot Cumulative Volume Delta (CVD) is taker-buy dominant, and the Spot Average Order Size has shown large whale buys in recent weeks. These signs from Glassnode-backed observers indicate demand on spot markets rather than liquidation-driven flows. (Source: Glassnode / TopNotchYJ) Bottom line - XRP’s near-term outlook looks cautiously constructive: strong support around $1.96–$2.00, accumulation signals, and bullish chart structure are positives. Offsetting that, crowded longs and the potential for funding-driven squeezes keep short-term risk elevated. Traders should watch whether price can reclaim and hold above $2.15 on convincing volume, and monitor funding rate behavior for clues about leveraged positions. Disclaimer: This summary uses reporting from AMBCrypto, CryptoQuant, and Glassnode for informational purposes and should not be taken as investment advice. Cryptocurrency trading carries significant risk; do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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