Ripple (XRP) at a Crossroads: Can it Break the $3 Barrier?
Bitcoin's liquidity squeeze puts XRP under strain, questioning its potential to reach $3.
Hey there! Let's dive into the crypto world and take a look at the current state of the third-largest cryptocurrency, Ripple (XRP).
At the moment, XRP is grappling with a 4% drop as Bitcoin traders have slammed on the brakes at the $105k resistance zone. As we speak, XRP is hovering around $2.42, trying to climb over the $2.72 resistance while resting on the 50-day EMA support at $2.27.
If the support line holds, there's a chance it could push towards $3.00. But with Bitcoin staying cautious, the market is feeling the squeeze. However, if BTC manages to break the $105k barrier, will altcoins like XRP witness a hard bounce back?
The Tightening BTC Squeeze: Where Does XRP land?
High-cap altcoins are swimming in Chop City, trading well below their weekly highs due to Bitcoin's liquidity crunch. In the past 24 hours, around $29 million in longs have been wiped – classic leverage puke. Zoom into the 4-hour chart, and it's clear that bullish action is getting steamrolled.
Bitcoin's rally has stalled near the critical $105,000 resistance. Momentum is fading, technicals are heating up, and holders are locking in profits – all classic signs of an overheated setup. Short-sellers are obviously stepping in to dampen the euphoria.
XRP isn't skating this heat either. Short-sellers are steering the ship, dominating order flow and ambushing bullish entries. Long liquidations have soared to $16.2 million, representing nearly 80% of total XRP wipeouts.
Unless Bitcoin confidently flips the $105k, expect liquidity squeezes to persist in the short term, making XRP's journey beyond $2.60 a tough battle.
The $3 XRP Dream: Is BTC the Key?
So, what about that $3 XRP goal? It's not an impossible dream, but BTC has the power to fuel it.
Recently, XRP temporarily outshone Tether (USDT) in market cap, giving a psychological boost to XRP bulls. In line with our previous predictions, as BTC nears a local top, the rotation narrative is heating up.
In yesterday's developments, XRP/ETH tagged a structural support zone, and with ETH appearing overextended, the reversal play lit up.
Result? XRP's market cap soared past $150 billion, all thanks to a momentum burst from the rotation playbook. The psychological impact? Noticeable. Binance reserves for XRP dropped from 2.906 billion to 2.89 billion – indicating active offloading into cold wallets or strategic accumulation.
Overall, continued sideways chop in BTC is priming the pump for altcoin inflows. However, the true fireworks will light up when Bitcoin smashes the $105k resistance. That's when short squeezes will rip through, and XRP can capitalize on the liquidity squeeze.
With strong on-chain demand building a solid foundation, a Bitcoin-fueled breakout is not unimaginable. Will the cryptoverse get a taste of that $3 XRP? Time will tell!
Stay in the know with our daily newsletter Bitcoin at $103K, but long-term holders remain unconvinced – Why?
- In the crypto world, Ripple (XRP), the third-largest cryptocurrency, is lately struggling to break the $3 barrier, amidst a 4% drop following Bitcoin traders' halt at the $105k resistance zone.
- As Bitcoin stays cautious, the market is feeling the squeeze, making it challenging for altcoins like XRP to move past their current positions.
- Traders are observing high-cap altcoins, including XRP, trading well below their weekly highs due to Bitcoin's liquidity crunch, with short-sellers dominating the order flow for XRP.
- Nevertheless, recent events show that XRP might benefit from a Bitcoin-fueled breakout, as fluctuations in Bitcoin's price and the rotation narrative can spark a surge in XRP's market cap.
- The continued sideways chop in BTC is setting the stage for potential altcoin inflows, and investors are keeping a close eye on Bitcoin's ability to smash the $105k resistance, which could trigger a series of short squeezes and potentially lead to XRP capitalizing on the liquidity squeeze.
