- XRP faced strong resistance near the $3 barrier as profit seekers began cashing out.
- The decision to HODL will depend on internal and external factors moving forward.
Among the top altcoins, Ripple (XRP) has been strategically positioned by bulls to ride the wave of the Trump pump. With explosive monthly gains of more than 300%, XRP has become the talk of the market, attracting both seasoned and enthusiastic new investors.
As a result, in just 30 days, XRP broke not one, but two major resistance levels. After regaining the $1 mark, it continued to build momentum, defying signs of market overheating and breaking past the $2 resistance level just a week ago.
This breakout, which occurred after three years of consolidation, naturally led to massive profit taking as investors were likely fearful of a potential correction. Dumping XRP seemed like the safest option.
But here’s the interesting thing. Market makers are still optimistic about breaking $3. This sets the stage for XRP to hit new all-time highs and trigger FOMO across the board.
Now this leaves traders with a classic dilemma. Should you cash out now and lock in your profits, or hold out and hope for a bigger rise?
XRP needs ‘consistent’ bull support
On the daily price chart, XRP has been trending down for up to four consecutive days, consistently showing signs of profit taking after testing each resistance. Interestingly, the fifth day often signals a strong rebound, bringing XRP back into action.
This pattern suggests that bulls are confident in countering the bearish divergence, making a $3 breakout not only plausible but increasingly realistic.
But this momentum alone is not enough. Just three days ago, XRP closed at a day high of $2.8, close to $3, after four consecutive days of long green candlesticks hitting higher highs of over 15%.
Source: TradingView
But this rapid rise came at a price. An overbought situation quickly emerged, triggering a three-day downtrend. Currently trading at $2.27 (at the time of writing), XRP has erased gains from previous bullish efforts.
Nonetheless, the solid base of XRP holders remains firmly anchored in realized profits, making the asset more vulnerable to speculative fluctuations.
Therefore, expecting a ‘continuous’ move towards $3 may be a gross exaggeration.
If the previous trend repeats, XRP could experience a slight bounce near $2.8 and a correction of profit takers overall is expected.
So, is it wise to hold on for bigger profits?
The answer to this question depends on internal and external factors. Internally, volume indicators suggest further upside as RSI has not yet reached overbought status, MACD crossover remains bullish and CMF remains positive.
Additionally, extreme FOMO is expected to dominate the market. prediction We have now set our 2025 XRP target at $6.
However, overall market volatility should not be overlooked. Over the past 24 hours, most altcoins fell into the red, with XRP leading the decline with a drop of nearly 5%.
This could lead to similar price action after Bitcoin breached $100,000, making XRP’s movements more dependent on external factors than internal factors.
Read Ripple (XRP) Price Prediction 2024-2025
Therefore, a $3 breakout could be realized if Bitcoin finds a market bottom and rebounds to previous resistance, restoring market confidence in other altcoins, including XRP.
Until then, a retracement to $2.8 seems more likely as the bulls remain confident of a recovery, and HODLing is the more logical choice.
However, it will be important to see how the market reacts to Bitcoin over the coming weekend to determine if a break above $3 is possible.