XRP is currently undergoing a period of extreme volatility, prompting Edo Farina, a respected figure in the cryptocurrency space and founder of Alpha Lions Academy, to issue a strong warning. In a recent post on X, Farina advised traders to exercise extreme caution, especially those using leverage, and warned that unpredictable market fluctuations could lead to significant losses.
XRP's Strong Price Surge Raises Concerns
Over the past 24 hours, XRP has recorded a significant increase of 7.55%, rising from a low of $2.78 to a daily high of $3.00, before stabilizing around $2.99. This sudden price volatility has sparked investor optimism but also highlighted the increasing risks in the current trading environment. Farina's warning underscores the dangers of leveraged trading in such volatile periods, where sharp reversals can wipe out positions in seconds.
This spike is part of a broader trend of increasing price instability, with XRP frequently experiencing wide daily fluctuations. These movements, amplified by speculative interest, have made this token one of the most volatile assets among major cryptocurrencies this week.
What Causes the Volatility?
Several key factors are driving the current price behavior of XRP. On-chain data shows increasing accumulation in whale wallets, signaling long-term bullish sentiment. At the same time, market makers are actively hedging their position risks around key price levels, contributing to sudden bursts in both directions.
Additionally, veteran trader Peter Brandt has recently identified a rare "double bottom" pattern forming on the XRP chart. If this technical pattern plays out, it could propel XRP to $4.47 in the near future. However, this pattern also carries downside risks, with a crucial support level around $2.70 to maintain the bullish structure.
Farina's Message: Avoid Risky Trading
Farina's advice to the XRP community is clear: avoid leveraged trading under these conditions. He warns that many traders underestimate the speed at which their assets can be liquidated in such a volatile market.
Instead of trying to predict every move, he advises holders to stay calm, adhere to long-term strategies, and avoid making decisions based on emotions.
He also emphasized the importance of self-custody, urging investors to move their XRP into secure cold wallets and reduce exposure to centralized exchanges, especially during high volatility.
The Road Ahead
XRP is currently testing the important psychological level of $3.00. If this token surpasses and maintains this level, it could trigger the next price surge. However, if it fails to sustain the upward momentum, the price may revert to the support range of $2.36 to $2.25.
In this context, Farina's warning is more relevant than ever. Although the recent price surge of XRP is promising, traders must remain aware of the risks associated with such rapid fluctuations. Currently, patience, discipline, and risk management are the most valuable tools to navigate the volatile path ahead.
