XRP News Today: XRP Surges 20% In A Day As Analysts Warn Of Emotional Traps

Vincent Van Code, a respected software developer and crypto market analyst, has issued a warning to XRP investors amid the asset’s price surge. He challenged the prevailing strategy of “taking profits on the way up,” arguing that it may be both financially inefficient and emotionally damaging, especially in a full-blown bull market like the one XRP is currently experiencing.

Van Code believes that selling too early in a rising market does more harm than good, particularly when it comes to taxes. In many countries, holding an asset like XRP for more than a year results in significant capital gains tax reductions, sometimes by as much as 50 percent. By frequently selling during rallies, investors not only forfeit long-term tax benefits but also trigger repeated taxable events that reduce overall returns. He stressed that short-term trading often leads to regret and emotional volatility, especially in fast-moving markets.

To illustrate this, Van Code painted a familiar scenario for traders: an investor sells XRP at $5.30 for a modest profit, only to wake up the next morning and see the price at $5.80. That moment of regret, he said, can fuel panic, indecision, and poor re-entry points. Without a tested system, trailing stop losses, and at least 15 hours a day to watch charts, Van Code argues that most people are setting themselves up for failure. His conclusion is clear: for the average investor, the best course of action is to buy and hold through volatility, not chase every pump and dip.

While Van Code supports long-term holding strategies, he was also quick to clarify that he’s not buying XRP at its current levels. Describing today’s market as overheated, he warned that new buyers may be entering too late. “That ship has sailed,” he said, referring to XRP’s breakout past $2. From his perspective, anyone buying at these elevated prices is taking on unnecessary risk, especially if they missed earlier accumulation zones. His advice is not to panic or FOMO into the rally but to exercise caution, conduct thorough research, and avoid gambling with volatile assets.

Van Code’s caution comes as XRP continues its most aggressive rally in years. As of report time, XRP is trading around $3.38, after reaching a 24-hour high of $3.65. The asset has gained more than 20 percent in a single day, smashing through previous resistance and entering new all-time highs. This momentum follows several bullish catalysts, including favorable regulatory developments and expanding institutional adoption of Ripple’s stablecoin RLUSD, and increased utility across global payment corridors.

Analyst sentiment remains strongly bullish. Veteran trader Peter Brandt has projected XRP could rally to $4.47, while on-chain strategist Ali Martinez has highlighted the MVRV golden cross, a signal that previously preceded gains of over 600 percent. However, some analysts warn of a potential short-term retracement as the market digests recent gains.

While XRP’s performance has been extraordinary, Van Code’s message serves as a grounded reminder of the emotional traps and tax consequences associated with short-term speculation. For holders who entered early, remaining disciplined and focused on long-term value could be the most strategic move. For new entrants, caution may be the best approach as the market tests new highs. In a time when euphoria is clouding judgment, his advice offers clarity: plan wisely, don’t gamble, and understand the game before playing.