XRP Price Rally Fades: Could Ripple Slip Under $3 Soon?

Highlights:

• Whale activity increases with 100M XRP accumulated in 48 hours.
• XRP price faces resistance at $3.50, risking a drop below $3.00.
• Bearish MACD crossover signals fading momentum; RSI suggests neutrality.

Ripple’s (XRP) price appears to be losing momentum after its recent bullish run. Following a 21% weekly rally, XRP surged to a high of $3.37 but now faces potential downward pressure. The price is teetering near the upper trendline of a bull flag pattern, suggesting a possible correction. Over the past 24 hours, XRP has recorded a 5% decline, signaling a shift in market sentiment. Analysts are questioning whether the digital asset might slip below the $3 mark soon.

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XRP Price Faces Resistance: Potential Break Below $3 on Horizon

The upward movement of the XRP price, which is linked to politics, reversed into a downward trend recently. The cryptocurrency increased by more than five times in value when Donald Trump won the presidency and became the third-largest digital currency by market value behind Bitcoin and Ether.

The crypto community remains positive due to Trump’s appointment of SEC Chair Paul Atkins who supports cryptocurrency initiatives. Due to Atkins’ positive view on crypto matters, people now believe regulators will shape policies that support inventive solutions.

Market interest grew when people began discussing the possibility of XRP joining the US cryptocurrency reserves. After Trump took office, the crypto market stabilized, and Bitcoin settled at around $103,000.

Throughout the past 24 hours, the worldwide cryptocurrency market value fell by 5.8%, and it is currently worth $3.51 trillion. Daily trading volume fell by 30.54% as market uncertainty spread across crypto markets. The strong resistance puts XRP at risk of falling under the $3 mark.

Whale Activity Sparks XRP Accumulation Surge

Crypto analyst Ali reports a significant increase in XRP accumulation by whales within the last 48 hours. According to data from Santiment, addresses holding between 10 million and 100 million XRP tokens acquired over 100 million XRP during this period.

Whales bought over 100 million $XRP in the last 48 hours, as shown by data from @santimentfeed! pic.twitter.com/TVdqt65Nu4

— Ali (@ali_charts) January 20, 2025

XRP Price Holds Amid Market Consolidation

As of reporting time, the Ripple price hovered around $3.0856, reflecting a slight market decrease of 5%. XRP faced resistance at $3.50, which aligns with recent consolidation near its all-time high (ATH). The critical support levels currently stand at $3.00 and $2.90.

XRP shows stable trading on the 4-hour chart since it peaked at $3.37. After climbing sharply this month, the token reached $3.50 but could not break through this level and dropped back down. Though the market has pulled back, XRP still maintains its value above the key $3.00 support level.

The Moving Average Convergence Divergence (MACD) is currently showing a bearish crossover, with the signal line crossing above the MACD line. This suggests a potential decline in bullish momentum. Additionally, the Relative Strength Index (RSI) stands at 49, signaling neutral conditions but hinting at a slight tilt toward bearish territory.

Basic support prices stand at $3.00 but breaking this could drop us to $2.50. Key resistance levels emerge at $3.50 followed by the ATH price around $3.80. If prices stay above $3.50 and $3.80 for a period we could see extended price growth. A drop below $3.00 support level risks sending the price back to $2.50.

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