- XRP’s resilience and strong dip-buying demand hint at long-term breakout potential.
- With momentum building, can bulls push past resistance?
Ripple’s [XRP] third dip to $1.9925 last week, followed by a 7.40% surge, shows classic dip-buying in action. Trading at $2.3855, a MACD bullish crossover reinforced the uptrend, with $2.60 resistance in sight.
Meanwhile, XRP/BTC neared early March levels, with no signs of overextension.
While XRP’s resilience signals long-term strength, short-term volatility remains, as profit-taking and risk-off sentiment could shake out weak hands. An uptick in exchange reserves suggests increased selling pressure.
If this trend continues, a retracement may be needed before the next leg up, especially with Bitcoin still under short-term pressure. This makes another market-wide correction likely.
XRP holds strong fundamentals amid weak spot demand
XRP/BTC shows strength, outperforming other high-caps in dip-buying. However, Ripple still moves in tandem with Bitcoin, not yet establishing itself as a completely independent asset.
While XRP’s fundamentals remain strong – with whales adding 150 million XRP in the past two days and investors reallocating funds from BTC to XRP – sell orders in the perpetual market are rising.
With weak spot demand, active addresses at their lowest since December, and retail distribution increasing, another long squeeze could challenge whale efforts. In that case, breaking $2.60 resistance won’t be easy.
Source: TradingView (XRP/USDT)
On Binance, short orders dominated March. Whales bought the $1.99 dip, triggering a short squeeze that pushed prices higher. A similar move could happen again, given continued whale accumulation.
However, if Bitcoin fails to break $85K and another sell-off hits, shorting pressure could squeeze long holders, reversing momentum. AMBCrypto breaks down the chances of this playing out.
Source: CryptoQuant
Navigating volatility: Where XRP stands
On its 1D chart, XRP’s price closely follows Bitcoin. Two dips to $1.99 in three weeks matched BTC falling below $80K.
XRP’s recovery has been stronger than BTC’s, drawing investor interest, but if Bitcoin dips again, the former could still revisit key support levels.
The risk remains high as major BTC stakeholders are still underwater, and demand at key accumulation zones remains weak.
While the Short-Term Holder SOPR reclaimed 1 as BTC bounced from $81K to $84K, low demand could make it difficult to absorb this sell-side liquidity.
Source: CryptoQuant
With Bitcoin facing resistance, XRP may retrace to $2.26 in the short term. However, if BTC drops below $80K, a retest of $2 or lower is possible – an opportunity short-sellers may capitalize on.
Despite strong fundamentals, XRP remains susceptible to market-wide volatility, making a break above $2.60 resistance challenging unless Bitcoin reclaims key resistance levels and restores broader risk appetite.
