XRP Bulls Battle Bears: Can $3 Breakthrough Hold?

XRP's price has been volatile in recent weeks, with a significant surge of 8% this week, accompanied by a 40% increase in daily trading volume. This surge occurred as whales snapped up XRP at the $2.40 dip, indicating strong bullish sentiment. However, the question remains: can XRP break through to $3, or is a pullback on the horizon to shake out weak hands before the real rally begins?

The XRP Ledger has seen a staggering 76% drop in active accounts from election levels, suggesting massive profit-taking as weak hands exit the market after cashing in on XRP's rise to $3.40. Despite this, the price chart shows signs of fresh accumulation at the crucial $2.40 support level, with whales snapping up 60 million XRP in just 24 hours. This could be the early stages of a rally back to $3, similar to previous cycles.

However, bearish pressure remains strong. Three straight red candlesticks on the 1D chart signal ongoing sell-side pressure, and the drop in active addresses adds to the bearish case. The XRP/BTC pair, after a ten-day rally, is now cooling off, reflecting a shift in capital flow from BTC into altcoins as investors rebalance their portfolios. Bitcoin dominance (BTC.D) has surged 1.01%, pushing near 61.20%, indicating that Bitcoin might be reclaiming its position as the market's focal point.

Unlike January, when whales aggressively accumulated over $1.5 billion in XRP, this month has seen a stark contrast, with no "major" accumulation in sight. This lack of big moves creates uncertainty and makes traders question the market's direction. With Bitcoin back in the spotlight, the coming days will be crucial in determining whether investors double down on Ripple or stay on the sidelines. Retail FOMO is nowhere to be seen, and without whale support, Ripple risks retesting $2.40 – or worse, breaking below it.