- XRP has seen a 15% increase this week, benefiting from the overall market rebound following a bearish end to Q4.
- Could this uptrend be the start of a larger rally for XRP, or will it be short-lived?
The cryptocurrency market is showing signs of recovery. Just a week into the new year, many digital assets are recovering lost ground from the post-FOMC downturn. Ripple (XRP) is among them, surging 15% to reach $2.40 – a crucial resistance level.
During the recent “Trump pump” frenzy, Ripple’s breakout against Bitcoin (XRP/BTC pair) indicated a shift in capital rotation as investors diversified their portfolios.
In November, on the day of the election, Bitcoin experienced a significant 9% surge in just one day, reaching $99K within two weeks.
As Bitcoin peaked, the XRP/BTC pair also saw a 10%+ gain, highlighting XRP’s growing popularity.
Source: TradingView
With the MACD lines close to a bullish crossover, there’s a possibility of history repeating itself. If Bitcoin hits $100K, Ripple could aim for $3 before the end of the month.
For XRP Holders: Exercise Caution
After a period of consolidation, Ripple is gearing up for a potential breakout. The increase in Open Interest (OI) suggests that more investors are going long, anticipating a rally in the near future.
However, the $2.40 – $2.46 range poses a strong resistance, and without sufficient buying pressure, XRP may struggle to break through and face a reversal.
Additionally, exchange outflows remain below 50 million, a far cry from the $3 billion observed when XRP hit its yearly high of $2.48.
Source: CryptoQuant
This suggests that the recent 15% surge may be driven by whale accumulation, possibly triggered by the new year excitement rather than widespread retail interest.
Realistic or not, here’s XRP market cap in BTC terms
The road ahead for Ripple won’t be smooth. While the cryptocurrency is well-positioned to attract funds from Bitcoin, breaking through $2.46 could be the crucial factor in making that a reality.
With FOMO (Fear of Missing Out) still subdued, it remains uncertain if XRP can generate enough momentum to sustain its upward trajectory.