- XRP has a track record of bouncing back when BTC hits its highs
- If the right factors align, a $4 target could soon be within reach
XRP’s rising above $3, fueled by whale accumulation, has rewarded patient investors, but holding steady has not been easy. With 53% year-to-date growth, investors are clearly torn – lock in profits now or stay the course for even bigger rewards?
The age-old dilemma of a bull market
Among high-caps, XRP’s 40% monthly gains stand out, with over half of that coming in the new year alone. While this signals a strong rally, it also hints at rapid appreciation – perhaps too much, too soon. The RSI seemed to back this up, jumping from neutral to overbought in just three days.
In markets like this, profit taking is almost inevitable.
After a 53% increase in XRP in less than three weeks, it’s no surprise that traders are cashing out. In fact, over the past two days, XRP flowing into Binance has surged to nearly 350 million – a staggering 1567% increase.
Source: CryptoQuant
But this is where it gets interesting – Despite the profit taking, the whales are still holding on. With about 4 billion dollars accumulated since the last Trump pump, the expected “massive” sales have simply not materialized. It’s clear these whales don’t want a quick win – they’re playing the long game.
If this trend continues, their strategy could pave the way for a powerful push towards $4, making holding XRP the smart move for those looking at long-term rewards.
XRP in a financial imbalance
As XRP surged past $3 with a 17% jump to reach $3.50 — just 11% off its all-time high from seven years ago — it then pulled back 8% at press time. This decline came as market dynamics changed, with supply overtaking demand, creating an economic imbalance.
Now the selling sentiment is taking over in the eternity market, which was emphasized by the buyer buy/sell ratiowhich gives shorts a clear advantage. The result? $8.44 million in long liquidations.
Clearly, the futures market is becoming riskier for XRP holders. And yet, has Open Interest (OI) only dropped with 0.70%. This means that more long positions may soon be squeezed out in the coming days.
Why? In the short term, volatility may increase as investors focus on Bitcoin with the Trump pump in full swing. As capital moves from XRP to BTC, the XRP/BTC pair has also turned red, signaling a shift in market focus.
Unless whales re-enter the accumulation phase, we may see more profit-taking and forced closures of XRP long positions. So caution is required in the derivatives market.
Source: CryptoQuant
Realistic or not, here it is XRP market value in BTC terms
That said, in the spot market, the lack of aggressive selling of whales is a sign of strong conviction.
If Bitcoin peaks and profit taking slows, XRP could see a push towards $4, making HODLing a smart move in the long run.
