XRP Holds Support Amid BTC Struggles, Eyes $3 Potential
Key Takeaways
- XRP is under pressure as Bitcoin fails to break the 105,000 USD mark.
- A rise to 3 USD is possible – but only if BTC sees a clear breakout.
- Short positions dominate the market, with XRP longs heavily liquidated.
- On-chain data shows a decline in Binance reserves – a sign of accumulation.
Bitcoin as the Key for XRP
Currently, XRP’s performance is heavily dependent on Bitcoin’s price action. While BTC is stuck at the resistance zone around 105,000 USD, XRP has lost around 4% and is currently trading at approximately 2.42 USD. The next resistance lies at 2.72 USD, while the 50-day EMA (Exponential Moving Average) at 2.27 USD serves as support.
A breakout above 105,000 USD in Bitcoin could give XRP the boost it needs to target the 3 USD mark. However, if this breakout fails to materialize, XRP is likely to remain under pressure.
Liquidity Constraints Slow the Market
The entire crypto market is currently suffering from a lack of liquidity. In the past 24 hours, long positions worth approximately 29 million USD were liquidated – a typical sign of excessive leverage. XRP was not spared: roughly 16.2 million USD in long positions were wiped out, accounting for around 80% of all XRP liquidations.
Short-sellers are currently dominating the market. They are capitalizing on uncertainty and actively betting on falling prices. For you as an investor, this means: be cautious with long positions as long as BTC does not show a clear direction.
Market Dynamics and Psychological Effects
XRP recently briefly overtook Tether (USDT) in market capitalization, moving into third place among the largest cryptocurrencies. Although this position was short-lived, the psychological impact on XRP investors was noticeable.
Another indicator of current market sentiment: XRP reserves on Binance have slightly decreased – from 2.906 billion to 2.89 billion coins. This could indicate a shift to cold wallets or targeted accumulation.
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Technical Outlook
XRP/ETH recently tested a key support zone. At the same time, Ethereum appears technically overbought. This suggests a potential rotation of capital from ETH into XRP – a typical behaviour during Bitcoin sideways phases.
XRP’s market capitalization temporarily rose to over 150 billion USD. This movement was driven by momentum and expectations of a Bitcoin breakout. If BTC convincingly breaks through the 105,000 USD mark, XRP could benefit directly.
Our Assessment
Despite short-term setbacks, XRP is showing structural strength. The technical support at 2.27 USD is holding for now, and market participants are reacting sensitively to Bitcoin’s movements. A sustained BTC breakout above 105,000 USD could push XRP toward the 3 USD mark.
However, as long as this breakout does not occur, XRP remains vulnerable to further pullbacks. For you as an investor, this means: closely monitor Bitcoin’s performance. Only when BTC shows clear strength does an XRP entry with a target of 3 USD make sense.
Sources
- TradingView
- CryptoQuant
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 2.33 |
| 24h % | -3.90 % |
| 7d % | -4.00 % |
| 30d % | 11.25 % |
| 60d % | 4.31 % |
| 1y % | 344.78 % |
| Official Links | Website |
| Socials | X |
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