XRP's market structure is showing similarities to a past high-pressure market phase, according to crypto market analysts. Multiple indicators suggest the asset may be revisiting a setup that previously marked a sensitive cycle point. On-chain data reveals a growing tension between short-term and long-term holders, while technical charts highlight a critical breakout zone following prolonged consolidation. Traders are closely monitoring XRP as it trades within a narrowing range.
Data presented by Cointelegraph indicates that XRP's current market structure mirrors a period in the 2022 market cycle. During that time, short-term investors accumulated positions near higher price levels. Long-term holders, conversely, maintained a much lower cost basis, which placed increasing pressure on newer buyers. This imbalance has now resurfaced, emphasizing the importance of support and resistance behavior.
On-chain data from Glassnode further clarifies the situation by examining realized prices across different holder age groups. Short-term holders are positioned close to the market price, leaving limited tolerance for downside movement. Meanwhile, long-term holders remain in profit, which reduces the likelihood of widespread selling. Consequently, structural support continues to rely on long-term conviction rather than short-term momentum.
ALERT: $XRP’s current market structure mirrors February 2022, with short-term investors accumulating below long-term holders’ cost basis, increasing pressure on top buyers. pic.twitter.com/MM5weFRIZU
— Cointelegraph (@Cointelegraph) January 20, 2026
Technical Structure Reinforces Historical Comparison
From a technical analysis perspective, XRP remains confined within a descending channel that has shaped its price action for an extended period. However, recent attempts to move above the upper boundary of this channel have captured market attention. According to ChartNerdTA, this development is significant because XRP continues to hold a multi-month support zone that has remained intact for over 400 days.
$XRP: Higher low -> Up we go 🚀 I refuse to be bearish above our multi-month support. Bulls have been defending this territory for over 400 days. Descending Channel -> Expansion 🎯 pic.twitter.com/OS8X1qL12g
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) January 19, 2026
This consistent support has attracted buyers, preventing deeper declines. Furthermore, the chart displays a higher low formation, which signals a weakening of seller control. This pattern suggests that buyers are entering the market at progressively higher levels, even as the price approaches resistance.
Structural Alignment Signals a Critical Phase
Significantly, on-chain and technical signals are now converging around the same price region. The realized prices of long-term holders align closely with the horizontal support highlighted on the chart. Additionally, the cost levels of short-term holders overlap with the descending channel resistance, thereby increasing pressure around the current trading range.
Sustained price acceptance above resistance could reduce stress on short-term holders and help stabilize broader market conditions. Conversely, a failure to maintain current support levels could expose XRP to renewed downside pressure, potentially toward long-term cost areas.
Despite the historical comparison, analysts emphasize that the current structure reflects a state of balance rather than a confirmed trend. Volume and follow-through remain essential for validation. XRP is currently trading above long-term support while testing overhead resistance, reflecting a historical pattern that continues to develop.