Ripple’s native token, XRP, has caught the attention of the crypto world once again after breaking above the critical $2.26 resistance level. The move marks a significant bullish breakout for the digital asset, which climbed to $2.32 within the last 24 hours—a gain of nearly 6.7%. This upward momentum was driven by solid technical patterns and strong fundamentals. However, the rally now faces potential headwinds following a large-scale transaction involving 29.5 million XRP, valued at approximately $68.7 million, being moved to the crypto exchange Coinbase. This has raised fears that the token may face intense sell pressure, which could undermine its current bullish trajectory.

From a technical perspective, XRP’s breakout follows the successful completion of an inverse head-and-shoulders pattern—a classic chart formation often seen as a signal of bullish trend reversals. The move above $2.2678 was seen as a key confirmation of this pattern. If buyers maintain control and XRP holds above this level, analysts believe the next targets lie at $2.61 and possibly even $2.90. The $2.26 zone now acts as strong support, and maintaining this level is vital if the asset is to continue its upward climb. Any weakness here could risk a breakdown in momentum and potentially reverse recent gains.

Yet, the massive whale transaction casts a shadow over this progress. Large token transfers to centralized exchanges like Coinbase typically suggest that the owner may be preparing to sell. If this XRP is offloaded into the market, it could trigger volatility or even fuel a short-term price correction. Though the coins have not been sold yet, the move alone was enough to stir anxiety among traders and investors. Analysts remain divided, with some viewing it as a strategic repositioning rather than an imminent dump. Still, the timing has raised concerns.

Meanwhile, XRP’s performance in the derivatives market reveals a wave of speculative interest. Derivatives trading volume spiked over 200%, with open interest also rising significantly. The majority of traders on major platforms like Binance have taken long positions, indicating widespread confidence in XRP’s continued rise. However, such an imbalance—where over 80% of the market is betting on further gains—can also lead to sharp corrections if sentiment flips, as overly crowded positions often unwind rapidly.

Adding to XRP’s bullish case is a healthy shift in on-chain metrics. The Network Value to Transactions (NVT) ratio has dropped by over 15% in the past day, suggesting that network usage is increasing in proportion to its market value. This decline points to more real-world utility, not just speculative activity, supporting the recent price gains. A stronger network often lays the foundation for longer-term growth, making this a promising sign for XRP’s prospects.

In addition to technical and on-chain strength, XRP is also seeing signs of renewed interest from the broader crypto community. Social engagement metrics have risen, with growing mentions and visibility across digital platforms. Although the levels are not at historical highs, the recent increase suggests that public sentiment is warming up to XRP again. Historically, social buzz has played a key role in amplifying retail-driven rallies, and if this trend continues, it could further boost momentum.

In summary, XRP’s breakout above $2.26 appears technically and fundamentally sound, supported by increased trading activity and stronger network performance. However, the looming whale movement to Coinbase is a wildcard that could destabilize the rally if it leads to large-scale selling. As XRP hovers near its new support, the coming days will be crucial. Holding the line at $2.26 while sustaining buying interest may be what determines whether the token can climb toward $2.90—or face renewed resistance.