- XRP has jumped 15% this week, riding the wave of a market bounce after the bearish end to Q4.
- Is this just the beginning of a larger rally for XRP, or will it be a short-lived bounce?
The market is bouncing back. Just a week into the new year, many coins are recovering ground lost during the post-FOMC meltdown. Ripple [XRP] is no exception, surging 15% to hit $2.40 – a crucial resistance point.
During the “Trump pump” frenzy, Ripple’s breakout against Bitcoin [BTC] (XRP/BTC pair) was a clear signal of capital rotation, as investors shifted focus and diversified their bets.
Back in November, on election day, Bitcoin surged a massive 9% in a single day, reaching $99K within just two weeks.
But just as Bitcoin hit its peak, the XRP/BTC pair shot up with a 10%+ gain, showing that XRP was gaining traction.
Source: TradingView
Now, with the MACD lines on the verge of a bullish crossover, there’s a chance this pattern could repeat. If Bitcoin hits $100K, Ripple could follow suit, eyeing a $3 target before the month’s end.
For XRP holders: Proceed with caution
After a month of consolidation, Ripple is setting up for a potential breakout. The rise in Open Interest (OI) indicates that more investors are taking long positions, suggesting they’re expecting a rally in the coming days.
However, there’s a catch – $2.40 — $2.46 is a strong resistance zone, and without enough buying pressure, XRP could struggle to break through and face a reversal.
What’s more, exchange outflows are still under 50 million, a far cry from the $3 billion seen when XRP reached its yearly high of $2.48.
Source: CryptoQuant
This points to the recent 15% jump being potentially driven by whale accumulation, possibly sparked by the new year buzz rather than widespread retail interest.
Realistic or not, here’s XRP market cap in BTC’s terms
Clearly, the road ahead won’t be easy. Ripple is positioned well to attract capital from Bitcoin, but breaking through $2.46 could be the key to making that happen.
With FOMO still lagging, it’s unclear if XRP can generate enough momentum.
