The post Altcoins Are About to Surge Dramatically—Why Is XRP Price Failing to Go Parabolic? appeared first on Coinpedia Fintech News
As Bitcoin gained momentum and marked a new ATH, the other altcoins also began to go parabolic. Some of them are gearing up to trigger a strong breakout, but the XRP price appears to remain restrained from the ongoing bullish trend. The price is closely consolidating below the pivotal resistance, which could point towards a breakout, but careful observation hints that the price rally could be restrictive, as suggested by a couple of on-chain data points.
The XRP price had been tightly consolidating below $1 for over a couple of years and triggered a massive breakout during Q4 2024. This was when the bulls, retail traders and whales all together pushed the price above $2. Since then, the price has remained consolidated between $2 and $3, failing to keep up with the growing market trends. The massive drop in the active addresses hints towards a sudden decrease in the users’ participation.
The drop in the active address hints towards a decrease in the number of traders contacting the network to perform a trade. This also indicates a drop in the volatility, which has kept the levels consolidated and prevented a breakout. On the other hand, Open Interest has also plunged, which was in recovery mode.
This suggests the traders are closing the futures positions either to take profits, cut losses or adjust their overall portfolio exposure. Moreover, some on-chain reports suggest the whales have off-loaded over 60 million XRP in the last 72 hours, which raises concern over the short-term price action.
Will XRP Price Fail to Reach $3?
The XRP price is closely consolidating but the token is accumulating gains between the range of 2018 and 2021 highs. Moreover, it has formed a massive bull flag and hence a breakout from the resistance could push the price into the discovery phase.
The rebound from the lows has not triggered a rebound with the RSI levels, which remain consolidated along the average range. This suggests the rally remains within a decisive phase and hence a rise in the RSI could eventually push the XRP price beyond the consolidated range; else a drop could drag the levels to the support close to $2 or slightly lower.