XRP nears major breakout, faces resistance at $3 with bullish momentum driving potential to $5 - IcoHolder.
XRP is on the brink of closing its largest monthly candle in two days, exceeding its previous high of $2.07 by more than 40%. The altcoin has managed to hold above the $3 mark since mid-January, but has yet to secure long-term price acceptance above its all-time high of $3.40. With only two days remaining in January, XRP's price momentum remains strong, but key resistance points loom.
XRP’s rally has been primarily driven by retail investors, buoyed by positive news surrounding Ripple and speculations that XRP may soon be included in a U.S. strategic reserve. This optimism has kept XRP spot buyers active on major exchanges such as Coinbase and Binance, with recent data confirming ongoing buying pressure.
However, there are signs that the spot volume is starting to decline, particularly when compared to the frenzied activity seen in December 2024 and early January 2025. A drop in trading volume is not necessarily a negative sign—it could signal a consolidation phase as the market catches its breath.
Despite the positive momentum, XRP faces potential challenges just below the $3 threshold. As the price hovers near this psychological level, futures traders may start to exploit liquidity pockets. Many traders have their stop-loss orders positioned just under $3, and market movers could push prices lower to trigger these stops and collect liquidity. A range between $2.98 and $2.90 could be crucial for a potential rebound, but any prolonged sideways action below $3 could indicate a shift in market sentiment towards the downside.
Looking Ahead: XRP’s Breakout Potential
While short-term volatility could threaten the price structure, the long-term outlook for XRP remains bullish. The altcoin is currently forming a bull flag pattern that could indicate an impending breakout. If XRP successfully breaks above this pattern, the next price target could range between $4.50 and $5.00, representing a 45% increase from current levels.
For now, the market waits to see whether XRP can maintain its momentum and clear the $3.40 barrier, or if it will face more turbulence as traders assess the evolving liquidity landscape. The next few weeks could be pivotal in determining whether XRP continues its upward trajectory or faces further consolidation.
