Could a $3 Surge Be Imminent?

At press time, the XRP token finds itself trading within a classic symmetrical triangle, a pattern often signaling price action ready to leap in either direction. This formation has kept traders on their toes as the cryptocurrency consolidates, seemingly preparing for a price breakout. According to the daily chart, this scenario occurred after XRP bounced back by over 20% from its December 30 low around the $1.99 mark.

Consequently, the recovery process has resulted in the token reasserting its dominance as it outperformed its popular rivals like Solana, Tether, and BNB—solidifying its position as the third-largest cryptocurrency in terms of market cap rankings, which sits at $140.23 billion, a modest 2% increase in the last 24 hours.

Yet the battle isn’t over. XRP remains locked within the symmetrical triangle’s restrictions, with the bulls targeting a breakout that could pave the way for a decisive uptrend. Market experts are closely monitoring key resistance levels around the $2.72 and $2.90 zones, vital thresholds that could catapult the token into the highly anticipated $3 territory. At the time of writing, the cryptocurrency recorded a 2.71% surge in the last 24 hours, trading at $2.45.

XRP Demand Rises Amid Supply Contraction

According to STEPH IS CRYPTO, XRP’s total supply is steadily declining, while demand appears to be soaring. In his analysis, the token’s total supply is almost hitting rock bottom, which aligns with a sharp price recovery in a few weeks. This inverse relationship between supply and price strengthens the case for a bullish breakout.

Following this market dynamic, STEPH believes XRP could be poised for 20% to 30% gains daily, reminiscent of its glory days during past bull run cycles. Further fueling this optimistic outlook, crypto analyst Ali revealed that whales have collectively purchased 360 million XRP tokens in the past 48 hours.

Whales bought 360 million $XRP in the past 48 hours! pic.twitter.com/w9OnuOK2x1

— Ali (@ali_charts) January 2, 2025

This buying spree suggests that major players are positioning themselves for what they anticipate will be a huge rally. Historically, whale accumulation at this scale has often preceded abrupt price movements in the cryptocurrency market.

On-Chain Metrics Reflect Market Optimism

On-chain data from CoinGlass further reinforces the inclining bullish sentiment in the XRP token. For instance, the OI-weighted funding rate stood at 0.0120% as of January 3, reflecting traders’ strong preference for long positions.

This indicates increasing market confidence in an upward price movement. It further shows that long position holders are willing to pay a premium to maintain their positions, anticipating near-term price gains. Simultaneously, the liquidation data reveals a disparity between short and long liquidations.

In the last recorded session, $777,000 worth of short positions were liquidated, compared to only $38,580 in long liquidations. This highlights the struggles of bearish traders as XRP’s price continues to rally, forcing them to exit their positions at a loss.

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