Here’s What Would Happen If XRP Price Hits $3 Today

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As a seasoned crypto investor with a decade-long journey through the digital asset market, I’ve seen my fair share of bull and bear markets. The recent surge of XRP, consolidating around $2.51 after rallying over 500%, has me on the edge of my seat. If the XRP price hits $3 today, it would be a significant milestone for this token that struggled for years amidst the SEC vs Ripple battle.

After surging over 500% in 2024, XRP experiences a period of stabilization. This pause following such a significant surge often sparks speculation, particularly given the proximity of Ripple’s token to its all-time high (ATH). Let’s delve into potential outcomes if XRP prices reach $3 today.

What Will Happen if XRP Price Hits $3?

Currently sitting at approximately $2.51, XRP appears to have reached its highest point. This digital token faced a prolonged struggle during the legal battle between SEC and Ripple, yet managed to reach an all-time high (ATH) of $3.85 in early January 2018. Fast forward to today, the price of Ripple stands at $2.51 following a significant surge due to Donald Trump’s election victory and Gary Gensler’s resignation announcement. These factors could potentially lead to further price increases. Interestingly, the brief rise to $3 in early 2018 was followed by several years of consolidation.

It seems like the existing conditions point towards a potential increase in XRP’s value soon, potentially reaching around $3. If this occurs, we could witness an extraordinary series of short positions being closed, as traders have been anticipating this very moment for years. While some will walk away with substantial profits, those still hoping for more growth in the price of Ripple tokens may end up suffering losses, as approximately $320 million worth of short positions would be liquidated.

According to Coinglass’s report on December 2, there was a total of $42.81 million in short liquidations and $38.81 million in long liquidations. Given that the short liquidation amount was higher, individuals who anticipated a drop in the ripple token price suffered losses. On December 3, 2024, the situation reversed with short liquidations amounting to $44.15M and long liquidations at $42.09M. This led to many short positions being closed, but some traders who had overextended their investments during the dip also experienced losses due to an increase in long liquidation.

As I analyze the current market trends according to Coinglass charts, it’s intriguing to note that the short liquidations are dominating in both situations. This could be indicative of a potential bullish trend, possibly driving the Ripple price up towards $3. It’s important to consider that the combined short liquidation for these two days amounts to a substantial $86.96M, already causing significant losses for many short traders. If the price does indeed reach $3, the liquidation could surge beyond $320M, further increasing losses for shorts but also fueling buying pressure but also causing a more pronounced Ripple price rally.

XRP Technical Analysis

Due to the launch of Ripple’s RLUSD, several cryptocurrency experts are optimistic about XRP’s price trend. For instance, crypto trader Peter Brandt perceives a “half-mast flag” pattern, suggesting potential growth. Meanwhile, analyst CasiTrades believes that the third wave impulsive move is intensifying as the token surpasses various local resistance levels, with increased trading volume and Relative Strength Index (RSI).

Based on the latest developments, the projected levels for the next resistance are approximately $3.81, $4.40, and $4.98. These levels may potentially set a new All-Time High (ATH) at $3.80. However, it’s important to note that a significant event is yet to occur. This could materialize when the price of XRP successfully converts its current ATH into support.

Bottom Line

According to numerous crypto experts’ forecasts on XRP price, there’s a high chance for a significant surge in the value of Ripple tokens, potentially reaching as high as $3. Such a rise could trigger a massive sell-off worth approximately $320 million, causing losses for many investors. This sell-off would impact short positions more severely than long ones, but it could also spark intense buying demand that might lead to an even greater increase in the price of Ripple. For the time being, Ripple’s price is hovering near $2.51, though technical analysis suggests a potential target of $3.81 or higher, possibly setting a new all-time high (ATH).

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2024-12-18 11:58