- XRP encountered strong resistance near the $3 mark as profit takers started cashing out.
- The decision to choose HODL will depend on both internal and external factors going forward.
One of the best altcoins is Ripple [XRP] was strategically positioned by bulls to ride the Trump pump wave. With an explosive monthly increase of over 300%, XRP became the talk of the town, attracting both seasoned investors and enthusiastic newcomers.
As a result, XRP shattered not one, but two major resistance levels in just 30 days. After regaining the $1 mark, it continued to build momentum, defying signs of an overheated market and storming past the $2 resistance just a week ago.
This breakout, after three years of consolidation, understandably led to heavy profit-taking as investors likely feared a possible correction. Dumping XRP seemed like the safest bet.
But here’s where it gets interesting: market makers are still optimistic about a $3 breakout. This sets the stage for XRP to break its all-time high, creating FOMO across the board.
This now leaves traders with a classic dilemma: cash out now and secure profits, or hold on hoping for an even bigger rise?
XRP needs ‘consistent’ bull support
On the daily price chart, XRP consistently shows signs of profit taking after testing any resistance, with a maximum of four consecutive downtrend days. Interestingly, the fifth day often signals a strong recovery, bringing XRP back into full swing.
This pattern suggests that bulls are confident in countering any bearish divergence, making a $3 breakout not only plausible but increasingly realistic.
However, this momentum alone will not be enough. Just three days ago,
Source: TradingView
But this rapid rise came at a price. Bought over conditions emerged quickly and caused a three-day downtrend. XRP is currently trading at $2.27 (at the time of writing) and has wiped out gains from previous bullish efforts.
Still, a solid base of XRP holders sits comfortably in the profits realized, making the asset more susceptible to speculative swings.
Therefore, it could be an exaggeration to expect a ‘continuous’ move towards $3.
If the previous trend repeats, XRP could experience a slight rebound near $2.8, with corrections expected from profit takers everywhere.
So is it wise to hold on for bigger gains?
The answer to this question depends on both internal and external factors. Internally, volume indicators point to further upside potential as the RSI has not yet reached overbought status, the MACD crossover remains bullish and the CMF remains positive.
Moreover, extreme FOMO is expected to take over the market predictions now sets a target of $6 for XRP by 2025.
However, overall market volatility should not be overlooked. Over the past 24 hours, most altcoins have plunged into the red, with XRP leading the decline with a drop of almost 5%.
This follows similar price action in Bitcoin after it breached $100,000, making XRP’s movement more dependent on external factors than internal factors.
Read Ripple [XRP] Price forecast 2024-2025
Thus, a $3 breakout could occur if Bitcoin finds its market bottom and returns to its previous resistance, restoring market confidence in other altcoins including XRP.
Until then, a reversal to $2.8 seems more likely as bulls remain confident of a recovery, making HODLing the most logical choice.
However, it will be important to see how the market reacts to Bitcoin over the coming weekend to determine if a $3 breakout is feasible.