The $2.81 level currently serves as the key support for the XRP token, according to Glassnode data.
Roughly 1.7 billion tokens have been accumulated at that level.
Why supply density matters
The analysis is based on the XRP cost basis distribution heatmap from Glassnode, which shows at which specific level holders accumulated their tokens.
Glassnode claims that this visualization provides a clearer view of the correlation between specific price levels and accumulated supply density. Such data can be useful for identifying potential support and resistance levels.
The heatmap shows that another major supply cluster is located at the $3.26 level. More than 1.05 billion tokens had been accumulated at the above-mentioned level.
For comparison, a mere 2.9 million tokens have been accumulated in the $3.57-$3.58 range, Glassnode data shows.
XRP's anemic performance
After recording stellar gains in the first half of July, XRP has been struggling to revive its bullish momentum.
According to CoinGlass data, XRP derivatives recorded a 44% drop in trading volume and an 82% drop in open interest (OI).
The Ripple-linked alternative cryptocurrency is currently down 15% from its current all-time high of $3.67, which was logged on July 18.
XRP briefly dropped below the make-it-or-break-it $2.81 level on Aug. 2, but it has since managed to recover.
XRP is currently up by more than 50% this year, substantially outperforming Bitcoin. Last year, it surged by more than 237%.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team