XRP’s Support Level at $2.81: Analyzing Supply Density and Recent Performance Trends

• Supply density is crucial for identifying support and resistance levels in cryptocurrency markets.

• XRP has seen a 44% drop in trading volume and an 82% decrease in open interest recently.

• Over 1.05 billion XRP tokens were accumulated at the $3.26 price level, indicating strong resistance.

Discover how XRP’s price dynamics are influenced by supply density and trading volume. Stay informed about market trends!

What is Supply Density in Cryptocurrency?

Supply density refers to the distribution of tokens held at various price levels. It helps investors identify potential support and resistance levels, making it a vital tool for trading strategies.

How Does XRP’s Performance Reflect Supply Density?

XRP’s recent performance illustrates the impact of supply density on price movements. According to Glassnode data, the accumulation of 1.7 billion tokens at the $2.81 level indicates a strong support zone. In contrast, only 2.9 million tokens are held in the $3.57-$3.58 range, suggesting significant resistance at higher price levels.

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