XRP at a critical turning point: dual confirmation of technical aspects and supply scarcity

In the current crypto market characterized by repeated testing, XRP is standing at a noteworthy time point. Unlike the market’s general wait-and-see sentiment, on-chain data and technical structures are sending a clear signal—this silence may not indicate weakness but rather a period of accumulation.

Supply Scarcity: XRP’s Long-Term Foundation

Before diving into the technical aspects, let’s look at some basic data. As of the latest statistics, XRP’s circulating supply is 60.699 billion tokens, with a maximum supply of 100 billion tokens. Unlike many projects that continuously issue new tokens, XRP adopts a fixed supply cap with no mining-generated new coins.

Interestingly, there is also a transaction fee burn mechanism—each transaction fee on the XRP Ledger is permanently destroyed. As network usage increases, the circulating supply actually decreases gradually. This design is especially critical in the current environment of high activity. Although tokens locked in Escrow are released according to a transparent schedule, such releases have long been absorbed by the market and have not caused supply shocks.

Hidden Signal in the 3-Day RSI

From a technical perspective, XRP’s 3-day RSI has completed a rebound from an extremely compressed state. Unlike short-term indicators that are easily disturbed by noise, the 3-day RSI reflects a deeper market psychology cycle—it often marks the establishment of a phase bottom.

Historical retrospection shows that whenever XRP’s 3-day RSI completes a similar reset, it is followed by a sideways consolidation phase. This stage may seem dull but is actually a rebalancing of bullish and bearish forces. During this period, the price tends to strengthen at key support levels, creating conditions for the next upward move.

Lateral Consolidation: Not a Sign of Weakness

Many traders tend to interpret sideways ranges as a loss of momentum, but in a healthy market structure, this is precisely a typical feature of accumulation phases.

Reviewing XRP’s historical cycles, each deep correction has been followed by several days to weeks of sideways movement before a stronger rally. The current pattern closely resembles this historical mode—price remains within a broad trend band, neither continuing to decline nor surging rapidly, but repeatedly confirming the validity of major support levels.

Overlay Effect of Time Windows

From a calendar perspective, the end of the year and the beginning of the new year are always periods of reallocation for crypto assets. Although seasonality is never a sole trading basis, when combined with strong technical fundamentals, it can amplify existing market momentum.

Currently, the price ($2.08), market cap ($126.20B), and 24-hour change (-0.76%) are all in relatively stable ranges, leaving ample room for a potential rebound.

Overall Judgment: Reasons to Be Patient

In summary, XRP currently exhibits a multi-dimensional support structure—fundamental economics of fixed supply, technical bottom confirmation, and healthy price accumulation patterns. Short-term fluctuations are inevitable, but the underlying logic remains intact.

If historical patterns continue, this period of silence may well be the prelude to the next wave of market movement. This is not a speculative expectation but a reasonable inference based on long-term structures and cyclical laws. For long-term followers, such windows are often worth patiently waiting for.