What It Takes for XRP to Hit $3 by the End of January

As January unfolds, XRP experienced a rollercoaster ride, initially surging 32.3% but then dipping 14% within just six days. Following this volatile period, many are wondering if XRP can reach $3 by the end of the month.

Key Takeaways

XRP initially surged by over 30% but then dropped 14% within a week.
Whale accumulation is increasing, which may support bullish sentiment.
The $2 support level is crucial for targeting the $3 mark.
Key price resistance and bearish market indicators could hinder growth.
Bitcoin’s movement may heavily influence XRP's potential rally.

Here's what needs to happen for XRP to reach $3 by the end of January

Ripple’s XRP has faced significant fluctuations this January, rallying and subsequently losing ground. Despite the recent downturn, signs of whale accumulation and strong defense of key price levels suggest that achieving the $3 target could still be within reach. However, several market dynamics need to align for XRP to regain its bullish momentum.

XRP: Long-Term Outlook and Current Trends

XRP 1-week Chart
Source: XRP/USDT on TradingView
XRP's recent performance shows it returned to the demand zone of $1.86-$2.22, a zone that has been well defended by bulls since December 2024. This pattern indicates that whale accumulation has been on the rise, which typically signals a bullish outlook.

The Bearish Argument for XRP

Despite the bullish signs, recent price action suggests challenges ahead. The rejection at the $2.40 level created a long wick on the weekly chart, indicating that bears continue to dominate. The Relative Strength Index (RSI) has failed to rise above the neutral level of 50, signaling no sign of a momentum shift. Furthermore, the On-Balance Volume (OBV) indicates that selling pressure remains high, nearing the lows seen in December 2024.

XRP 1-day Chart
Source: XRP/USDT on TradingView
However, XRP maintains a bullish structure, but its bearish OBV raises concerns about its ability to sustain a strong performance in January. If XRP falls below the key range of $1.85-$1.90, bulls may face significant hardship.

Total Market Cap
Source: TOTAL on TradingView
The overall crypto market cap has retreated below a multi-year upward trend. As of now, the previous support is being retested as resistance, indicating that the altcoin surge seen at the start of the year may only be a temporary upward blip rather than a sign of a solid upward trend.

To support a rally back to $3, Bitcoin needs to reclaim territory above $94.5k and maintain momentum to breach the critical $100k psychological barrier. This shift in Bitcoin's price could alter market sentiments and encourage new investments, but caution is advised as evidence suggests XRP might remain bearish in the coming weeks.

Final Thoughts

While the possibility of XRP hitting $3 exists, several market conditions must first align. Investors should stay vigilant as the market continues to evolve, weighing both bullish and bearish indicators before making decisions.