XRP Price Reclaims $2 as Escrow Lock and Holder Accumulation Strengthen Bullish Outlook

XRP price has staged a notable recovery, climbing back above the critical $2 level as momentum improves across the broader cryptocurrency market. While the recent upswing reflects stronger overall risk sentiment, XRP’s move is supported by deeper structural factors that extend beyond short-term market enthusiasm. The altcoin’s ability to reclaim this psychological threshold has also briefly allowed XRP to overtake BNB in market capitalization rankings, signaling renewed investor confidence after several weeks of consolidation.

A key driver behind the XRP price recovery is a significant on-chain development involving supply dynamics. More than 500 million XRP were recently transferred into escrow, effectively locking the tokens until 2028. This move removes over $1 billion worth of XRP from active circulation, tightening available supply during a period of increasing demand. Historically, such escrow-based supply reductions can amplify price movements, especially when demand remains steady or grows, creating conditions for a potential supply shock.

On-chain metrics further reinforce the bullish narrative. Data from the HODLer net position change indicator shows that long-term XRP holders have shifted back into accumulation mode. Over the past week, wallets classified as long-term holders have consistently increased their balances, reversing nearly a month of sustained selling pressure. This behavior typically reflects renewed confidence, as long-term investors tend to accumulate when they anticipate continued upside rather than short-lived price spikes.

At the time of writing, XRP is trading near $2.00, up approximately 6.7% in the past 24 hours. Holding this level as support remains crucial for confirming a sustained bullish trend. Immediate resistance sits near $2.03, and a decisive break above it could open the door for a move toward $2.10, where historical resistance and liquidity are concentrated. However, downside risks persist, as short-term holders may look to take profits. A drop below $1.93 could weaken the bullish structure and expose XRP to a deeper pullback toward $1.86.