XRP is showing resilience in the recent crypto market selloff

• XRP investors held on to their tokens despite the crypto market selloff last week.
• Resistance among investors could be due to potential growth catalysts in 2025.
• XRP could retest its all-time high resistance if it breaks the upper limit of the key symmetrical triangle pattern.

Ripple’s XRP rose 6% on Tuesday after a series of on-chain metrics revealed that investors in the remittance-based token held on to their holdings despite a broader selloff in the crypto market last week.

XRP investors are showing resilience to the recent sell-off in the crypto market

XRP investors remained calm despite last week’s market selloff triggered by the Federal Reserve’s decision to cut rates just twice in 2025.

Unlike most other cryptocurrencies, where investors are quick to dump their holdings, most XRP investors have held on to their tokens, as shown by the downward trend in XRP Dormant Circulation across all coin age groups. This metric rises when investors quickly sell off their tokens and falls when investors hold their investments.

XRP inactive circulation and mean coin age. Source: Sentiment

A similar trend is seen in the XRP Mean Coin Age metric, which measures the average number of days that all XRP tokens have remained at their current addresses. This metric has slowly increased since December 12, indicating that XRP investors are slightly inclined to accumulate rather than sell.

Namely, whales have accumulated over 260 million XRP tokens in the past five days.

XRP supply distribution. Source: Sentiment

The accumulation bias comes amid XRP investors holding average gains of over 300% in the face of a selloff in the crypto market. This shows the growing resilience among XRP investors even with the broader negative sentiment in the crypto market.

XRP weighted sentiment. Source: Sentiment

The hold stance could be due to upcoming potential growth catalysts, including expectations for the XRP ETF in 2025 and President-elect Donald Trump and the new Securities and Exchange Commission (SEC) administration taking office on January 20.

On the contrary, the smaller distribution of XRP could be because investors have already recorded significant profits between November 30 and December 17, as shown in the chart below.

Realized profit/loss of the XRP network. Source: Sentiment

The continuation of XRP’s uptrend depends on a break above a key trendline

XRP has seen $6.6 million in liquidations in the last 24 hours, according to Coinglass. Long and short positions liquidated were USD 2.02 million and USD 4.58 million, respectively.

After a rejection near the psychological level of $3.00 on December 3rd, XRP is consolidating within a symmetrical triangle pattern. The remittance-based token is now trying to move higher after bouncing off the triangle support trendline near $2.1.

XRP/USDT Daily Chart

If XRP breaks the upper limit of this triangle pattern, it could recover and test its all-time high resistance at $3.55. However, a break below the lower boundary of the trend line could trigger a massive decline towards the $1.35 support level. The $1.96 level and the 50-day simple moving average (SMA) could serve as key support levels if such a scenario plays out.

The Relative Strength Index (RSI) momentum indicator is slightly above its neutral level, indicating that bullish momentum is slightly dominant. Meanwhile, the Stochastic Oscillator (Stoch) is just below its neutral level, indicating that a transition to bullish dominance is imminent.

A daily close of the candle below $1.35 will invalidate the thesis.

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