XRP has demonstrated notable resilience recently, with strong dip-buying demand signaling a potential long-term breakout. Following its third dip to $1.9925 last week, the token surged by 7.40%, pushing its price to $2.3855. This rally is supported by a MACD bullish crossover, which reinforces the uptrend. As a result, XRP bulls are now eyeing the $2.60 resistance level. However, despite this bullish momentum, the overall market volatility, primarily driven by Bitcoin’s fluctuations, could play a crucial role in determining whether XRP can break past this resistance or if its rally will face significant setbacks.

XRP’s price movement has been largely driven by dip-buying behavior, a pattern that has provided the coin with solid support. The cryptocurrency has shown strength, outperforming many of the top altcoins during market dips. The price of XRP has been gradually climbing as investors continue to accumulate, reflecting growing confidence in the asset’s potential. Additionally, XRP/BTC has shown an improving performance, moving closer to levels seen in early March. This further strengthens the outlook for XRP, suggesting that the token may continue to build bullish momentum. However, despite the positive trend, XRP remains highly correlated with Bitcoin’s movements, meaning that any major volatility in Bitcoin’s price could impact XRP’s progress.

Although XRP has displayed resilience, short-term volatility remains a significant concern. Market-wide corrections, as well as profit-taking and risk-off sentiment, can still cause a shakeout of weaker hands in the market. For instance, an increase in exchange reserves indicates that there might be rising selling pressure on the market. As a result, the ongoing volatility could create significant price swings for XRP, preventing it from easily breaking through the $2.60 resistance. If Bitcoin continues to struggle with resistance and faces another sell-off, XRP could be dragged down along with it, making it difficult to push past the next price barriers.

In terms of fundamentals, XRP still holds a strong position in the market. The whales continue to accumulate XRP, adding 150 million XRP in just two days, which has led to price increases. The increased accumulation by large investors points to strong confidence in the future of the asset. However, despite this positive development, there are concerns over weak spot demand and decreasing active addresses, which are indicators of reduced market activity. Additionally, retail distribution has been on the rise, meaning that more smaller investors are offloading their holdings, potentially leading to a sell-off. As a result, XRP might face more resistance as it attempts to break through the $2.60 level, making the rally less straightforward.

On the trading front, short orders on platforms like Binance have dominated in March, especially after the dip to $1.99. This led to a short squeeze that pushed prices higher. A similar pattern could repeat itself if whale accumulation continues to push prices upward. However, should Bitcoin fail to break above the $85K level and another market-wide sell-off occurs, XRP’s momentum could reverse. If Bitcoin dips below $80K again, XRP could retest key support levels, including $2 or lower, especially if short-sellers capitalize on a potential retracement.

In conclusion, while XRP shows strong potential due to its solid fundamentals and increasing whale activity, its short-term outlook remains tethered to the overall crypto market sentiment, heavily influenced by Bitcoin’s price movements. If Bitcoin faces another downturn, XRP may struggle to break through the $2.60 resistance, with a retracement to lower levels being a more likely scenario. While the long-term outlook remains positive, near-term volatility poses a significant risk for XRP’s rally.