The XRP price began to consolidate at $2.51, increasing by over 500% in 2024. This development, Ripple $2.5It attracted attention as it approached the previous all-time high (ATH) price of $3.85. Despite years of legal battles with the SEC, market dynamics support XRP’s bullish potential. So, what might happen in the market if the XRP price reaches $3?
Major Liquidation Risk and Market Impacts
If XRP reaches the $3 level, large-scale short position liquidations may occur in the market. According to Coinglass data, the total size of liquidations at this level is estimated at $320 million. Intensive transactions, especially by traders who have been waiting for this price level for years, may increase fluctuations in the market.
Analysts predict that with the XRP price exceeding $3, new targets could be at $3.81, $4.40 and $4.98. These levels may create new support points in XRP’s market movements. Closing short positions quickly can increase buying pressure and trigger an upward movement in the price. At the same time, this can affect the overall liquidity of the market and open the door to different strategies.
Technical Analysis and Future Potential of XRP
Analysis made after Ripple’s RLUSD launch offers a positive outlook on the price of XRP. Technical indicators indicate that XRP may test higher levels after a period of consolidation. The $3.81 level is considered a new target by analysts. The buying pressure that will be experienced during this period may cause XRP to reconsider its ATH levels.
On the other hand, the decrease in uncertainties created by the fight between the SEC and Ripple had a positive impact on market sentiment. Gary Gensler’s resignation statements and macroeconomic developments prepare a suitable ground for XRP. All these factors are among the critical elements that will shape the price of XRP.
As a result, there could be significant changes in market dynamics if XRP reaches $3. Large liquidations, buying pressure and positive predictions in technical analysis support XRP’s future upside potential. However, investors need to be careful and follow market conditions closely.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
