Ripple’s XRP is making headlines today, soaring 30% in the early hours of Tuesday. This dramatic uptick comes as the cryptocurrency market begins to recover from recent turmoil. Investors in XRP have pocketed nearly $2 billion in profits over the last three days, a remarkable feat following President Trump’s announcement of tariffs on Canada, Mexico, and China.
Despite bearish sentiments lingering in the market, XRP bulls are eager to drive the remittance-based token above the critical $3.00 psychological level. However, XRP faces challenges, including a descending trendline resistance that has been in place since January 16.
Recent data reveals that selling pressure has largely come from whales, both long-term and short-term holders. This heavy selling has caused spikes in whale transaction counts and dormant circulation. As a result, XRP’s Weighted Sentiment has plummeted to levels not seen since November, indicating a sharp decline in positive social sentiment surrounding the token.
Funding rates for XRP have also hit lows last observed in August. These rates are crucial as they represent payments between traders, ensuring that crypto derivative contracts align with their spot counterparts. Typically, when negative sentiment runs high, prices tend to move in the opposite direction, partly explaining XRP’s recent resurgence.
However, the road ahead isn’t entirely smooth for XRP. The token’s open interest has declined from 2.05 billion XRP to 1.50 billion XRP, signaling a hesitance among investors to maintain large positions. The recent market volatility led to $103 million in futures liquidations in just 24 hours, marking the highest single-day liquidations in this market cycle. The liquidated positions included $74.67 million in long and $28.28 million in short trades.
As the broader crypto market stabilizes, XRP aims to reclaim the $3.00 mark. If successful, it could set its sights on the seven-year high resistance of $3.40. Breaking through this level could pave the way for a new all-time high above $3.55.
Technical indicators show promise. Both the Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are trending upward, with the Stoch crossing above its neutral level. This indicates a resurgence of bullish momentum, suggesting that XRP might just be on the verge of a major breakout.
