Currently, the crypto market is at a delicate critical point. Although Bitcoin's price once broke the $100,000 mark, it is now hovering before the key resistance level of $105,000, with overall upward momentum slowing down. This stagnation not only affects Bitcoin's own trend but also directly influences the performance of other high market capitalization crypto assets, with XRP being one of the most representative.
Can XRP strengthen? Everything depends on Bitcoin's next move.
In the past few days, although XRP has experienced several rebounds in the local market, its price remains constrained by Bitcoin's dominant trend. The current trading price of XRP is around $2.42, with the first resistance level for upward breakout at $2.72, while the key support level below is near the 50-day EMA at $2.27.
Market analysis firm COINOTAG points out that if Bitcoin cannot effectively break through the strong resistance area of $105,000 in the short term, the overall market will continue to face liquidity tightening risks, which poses direct pressure on altcoins like XRP.
Market volatility intensifies, bullish funds accelerate their exit.
As Bitcoin's high-level fluctuations failed to maintain upward momentum, the volatility of the entire crypto market has significantly increased. In just the past 24 hours, the liquidation amount of long positions has reached as high as $29 million, with XRP's long liquidations accounting for nearly 80%. This situation indicates that, in a high-volatility context, bullish sentiment is quickly cooling down, and bearish forces are gradually taking control.
XRP long liquidations have surged, accounting for nearly 80% of total liquidations, as the market enters a phase of high uncertainty.
Technical aspects and on-chain dynamics release potential positive signals.
Despite short-term market pressure, XRP's performance in terms of technical structure still shows certain bullish potential. Especially in the trading pair with Ethereum, XRP is gradually building a relatively solid structural support, demonstrating some resilience against declines.
Meanwhile, XRP's market capitalization recently broke the $150 billion mark, even surpassing the stablecoin giant Tether (USDT) at certain times, becoming one of the market's focal points. This dynamic indicates that funds are reassessing XRP's potential value.
On the other hand, on-chain data shows a declining trend in XRP reserves on the Binance platform. This may indicate that users are hoarding coins through cold wallets or taking profits in stages, reflecting that XRP's trading activity remains relatively high in the current price range.
Whether Bitcoin breaks through will determine XRP's fate.
XRP's recent rebound, while having certain technical support and market capitalization performance, still depends on whether Bitcoin can break through the resistance level of $105,000 for further strengthening, or even hitting the $3 mark.
Analysts at COINOTAG point out that Bitcoin is currently in a phase where it may be forming a local top. If it cannot effectively stabilize above $105,000, the market may enter a prolonged horizontal consolidation phase, making it difficult for XRP to independently emerge as a strong performer.
However, once Bitcoin successfully breaks through this resistance, market liquidity may be reignited, and the altcoin sector is expected to welcome a new round of capital inflows, with XRP, as one of the leading assets, having the opportunity for a breakthrough rally.
XRP's current trend is in a highly sensitive phase. Although the technical patterns and capital dynamics show certain advantages, the real turning point still needs to come from Bitcoin's directional choice. Only when BTC breaks through the key level of $105,000, with market confidence and liquidity warming up simultaneously, will the possibility of XRP hitting $3 truly materialize.
Before that, investors still need to remain vigilant and closely monitor Bitcoin's price movements and changes in overall market liquidity.