The short term outlook for XRP is optimistic as STH activity increases by 38%.

XRP price increased by 13% in the past week, indicating a recovery in market strength. Amid the overall upward trend in the crypto market, data shows that the increase was supported by strong accumulation activity from short term holders (STH).

This reflects the increasing confidence from traders – those who often play a decisive role in shaping the short term price fluctuations of this token.

XRP surges as short term holders increase supply

According to data from Glassnode, STH XRP ( holders who have held for 1–3 months ) have continuously increased their holdings over the past month. This trend has contributed to the double-digit growth of the token this week.

On-chain analysis from the HODL Waves index shows that this group of investors has expanded their holdings by 38% in the last 30 days.

HODL Waves XRP | Source: GlassnodeThe HODL Waves index tracks the length of time that coins are held by different groups of investors, providing deeper insight into holding patterns in the market.

The STH group increasing the supply of XRP is very noteworthy, as this group often controls a significant portion of the circulating tokens and tends to react quickly to market fluctuations. Therefore, their accumulation or distribution model often has a substantial impact on price volatility in the short term.

The fact that STHs are gradually accumulating more XRP reinforces the argument for a sustainable upward trend, indicating that market confidence is increasing and the potential for continued growth remains if macro conditions stabilize.

In addition, the relative strength index (RSI) of XRP on the daily chart also supports a bullish outlook. At the time of writing, this momentum indicator stands at 59.65 and is trending upward, reflecting market sentiment leaning towards a bullish trend.

RSI XRP | Source: TradingViewRSI measures the overbought or oversold level of an asset on a scale of 0 to 100. A reading above 70 indicates overbought conditions and the possibility of a price correction, while a reading below 30 signals oversold conditions and may lead to a bounce back.

Therefore, the RSI of XRP at 59.65 indicates strong demand for this cryptocurrency, while there is still room for growth before facing significant selling pressure.

XRP may surge to 3.66 dollars or adjust to 2.87 dollars

If buying pressure is maintained, XRP may attempt to break through the resistance level at $3.22. If successful, this token could extend its rally to $3.66, the last high recorded on July 18.

XRP Price Analysis | Source: TradingViewConversely, if demand decreases, the price of XRP risks correcting and falling to $2.87.

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