XRP has been one of the standout performers in the cryptocurrency market recently, making the most of Bitcoin’s post-Fed recovery. After two impressive surges of over 10% in just one week, the altcoin is on the verge of a major breakout. With the price currently sitting at $2.86, XRP is gaining traction, and many are wondering: Is a $3 breakout on the horizon?
The latest rally in XRP has been driven by strategic whale activity. In just 24 hours, a staggering $12.68 million worth of shorts were liquidated, signaling that XRP bulls are firmly in control. This surge has propelled XRP to a standout 23% weekly increase, making it the only high-cap cryptocurrency showing such strength during this period.
Interestingly, XRP’s breakthrough above the $2.80 mark is not coincidental. It is the result of strategic accumulation by large wallets. Over the past two months, wallets holding between 1 million to 10 million XRP have ramped up their holdings by over 37%, adding a massive $3.8 billion worth of XRP to their portfolios. In the last week alone, wallets holding 100 million to 1 billion XRP acquired an additional 1.09 billion tokens.
Why does this matter? Large investors and whales have been closely monitoring XRP’s price movement, and their strategic buying at lower levels has propelled the coin higher. This surge in buying activity occurred just as XRP was rallying toward the $2.80 mark, representing a 351% increase from its previous low. With whales back in action, a $3 breakout by the end of Q1 is within the realm of possibility.
As XRP’s price continues to rise, retail investors are starting to take notice. For long-time HODLers, this rally marks the culmination of months or even years of waiting. Many of these HODLers have seen their patience rewarded with significant profits. However, with the rally heating up, some analysts warn of a potential “sell-the-news” effect, where short-term traders sell off their holdings after a major price surge.
XRP’s Relative Strength Index (RSI) has already surpassed the 70 mark, a common signal of an overbought market. While it’s not yet at the extreme 95 level seen when XRP previously peaked at $2.80, the market is clearly becoming more heated. As XRP approaches $3, fear of missing out (FOMO) could drive additional buying pressure, but it’s important for HODLers to remain cautious to avoid a potential long squeeze.
Despite the rally, one key factor to watch is the movement of retail capital. When XRP’s price last surged to significant levels, roughly 12 billion XRP were removed from exchanges, signaling strong market confidence. Currently, only 22 million XRP have been withdrawn from exchanges, suggesting that retail capital has not yet fully returned to its peak levels. This lack of substantial retail participation may leave the market vulnerable to corrections, as whales continue to dominate the buying action.
The strong accumulation by whales, combined with a still-limited retail inflow, sets the stage for a potential breakout. However, this also means that XRP’s price could face increased volatility in the short term as whales and institutional players control the majority of the market.
With strong hands controlling the market and key technical indicators pointing toward a potential breakout, it seems increasingly likely that XRP could push past the $3 mark in the near future. The next few days will be crucial for determining whether this rally has staying power or whether XRP will experience a pullback.
While breaking $3 may be inevitable, the real test for XRP will be holding that level and preventing a sharp correction. As long as whales continue to accumulate and market sentiment remains positive, XRP’s prospects look strong. But, as with any volatile market, caution is advised for both HODLers and short-term traders alike.
XRP has been making waves in the cryptocurrency market, and its recent price movements suggest that the altcoin could break the $3 barrier by the end of Q1 2025. With whales driving the majority of the buying action and the market still showing growth potential, XRP’s path to $3 looks promising. However, as with all cryptocurrencies, market volatility remains a factor, and investors should remain vigilant as the next few days could determine whether this breakout will hold.
Get the latest Crypto & Blockchain News in your inbox.