- XRP’s bullish rally to $1.50 has hit a roadblock as weak hands exited after realizing profits.
- Without an external catalyst, a drop to $1.20 support looms.
Profit-taking on Ripple’s [XRP] daily chart is evident, with the last five days showing a pullback after hitting $1.50.
XRP now finds itself in a critical middle ground, facing several challenges before a bullish run to $2 can take shape.
On-chain data revealed heightened whale activity, hinting at a possible bottom formation. Yet, XRP’s staggering 200% surge in just one month has left the market teetering on the edge of overheating.
While a short-term correction appears likely, flipping $1.20 into solid support is essential. Without this, reigniting FOMO and confirming a stronger bottom could prove difficult.
The market is searching for a ‘savior’
Interestingly, unlike past cycles where memecoins thrived during Bitcoin’s consolidation, altcoins are reclaiming dominance, with meme-based tokens leading the top 4 weekly losers list.
Amid heightened volatility, investors seem to have shifted toward altcoins, opting for relatively safer bets over high-risk plays – an opportunity XRP bulls must seize to keep prices within the $1.40 band.
Whale activity has played a crucial role in supporting this, effectively countering the massive XRP inflows that peaked five days ago.
This marked the second-highest inflow of all time, with over 10 billion XRP tokens submitted into Binance.
Source : CryptoQuant
On the 1-day price chart, these deposits were clearly impactful, triggering four consecutive days of losses that pushed XRP back down to $1.20, wiping out much of the previous day’s 18% surge.
Technically, while many weak hands have exited after realizing profits, long-term holders from the past three years remain in profit, waiting for a bullish run to materialize.
Although whale activity has likely encouraged HODLers to stay committed, the current market volatility means there’s still a strong chance that more weak hands could be shaken out.
However, with a growing speculation around a potential bullish Thanksgiving rally for Bitcoin, which might see a rebound to $99,000, this “social-media-driven” momentum could push altcoins, including XRP, to break key psychological resistance levels.
For XRP, $1.90 appears to be a crucial price point to watch. Given the massive liquidity in the market and with most stakeholders exiting.
This cycle is now depending heavily on an external catalyst to dispel the notion that $99K could be a potential top for Bitcoin.
Additionally, since altcoins often benefit the most during Bitcoin’s bull runs, a similar reaction could trigger a bullish rally for XRP.
Is XRP bullish enough to aim for $1.90?
As mentioned earlier, the $1.20 support is crucial for bulls to defend. If the price reaches this level, panic could likely ensue, triggering further selling as a significant portion of stakeholders’ portfolios move into the red.
To mitigate losses, most positions will likely close.
However, there is a silver lining: as market dynamics dictate, every retracement offers an opportunity for retail investors to enter at a discounted price, potentially setting up a bullish rally.
Yet, everything hinges on the larger picture – primarily Bitcoin’s short-term movements – while Ripple’s standing in its legal battle with the SEC could chart the course for the long-term.
With President-elect Trump returning to office, a staunch pro-crypto advocate, the Ripple community has responded with optimism, fueling speculation that XRP could reach a new all-time high next year.
Realistic or not, here’s XRP market cap in BTC’s terms
However, in the near term, breaking $1.90 is key to reigniting FOMO, with retailers eyeing $2. This largely depends on Bitcoin’s movements – either breaking resistance or consolidating, as XRP tends to follow suit.
On the flip side, a BTC pullback could trigger a healthy retracement to $1.20, providing a solid entry point for many. This could lay the foundation for a rally back to $1.90 and open the door for further gains.
