XRP has recently shown promising signs of recovery, having regained 50% of the losses from previous declines. Trading at $2.29, this altcoin is currently just below the crucial resistance level of $2.33.

To maintain this upward momentum, XRP needs continuous support from investors, which it appears to be receiving.

XRP Investors Remain Calm

The Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) indicator shows that long-term holders (LTHs) are currently in profit. This is crucial for XRP's price action, as LTHs typically avoid selling when their profits increase. Their conviction in holding their positions provides stability and support for the price.

History shows that when the LTH NUPL indicator crosses the Euphoria threshold, it often leads to a strong price increase. This signal has driven past price rallies, and many analysts believe that XRP could see a similar trend if the current conditions persist. As LTHs remain committed, the price can continue to push higher.

In terms of macroeconomic drivers, the Price DAA Divergence indicator is currently flashing a buy signal. This divergence shows that both the price and the number of active daily addresses (DAA) are increasing, signaling increased investor participation.

The growing number of active addresses indicates that traders are becoming increasingly confident in the future prospects of XRP. Combined with the price increase, this could help drive the continued recovery of this altcoin.

XRP Price Needs to Find a Breakout

The XRP price has increased 13% in the past four days, trading at $2.29 today and recovering 50% of the recent 22% loss. This altcoin is currently testing the crucial $2.33 level, which it needs to break through to have the potential for further gains. If it manages to overcome this resistance level, XRP could move towards $2.70, fully recovering the recent losses and pushing the price even higher.

The factors discussed earlier suggest that XRP has the necessary momentum to continue its recovery. The support from LTHs and the buy signals from technical indicators provide a solid foundation for the next price increase.

However, if XRP fails to break above the $2.33 resistance level and drops to $2.14 or lower, the bullish outlook may be invalidated. A decline to $1.94 would wipe out the recent gains and put XRP back on a downward path. Therefore, maintaining support at the $2.33 level is crucial to sustain the current uptrend.