XRP Surges 7.40% After Dip, Whales Accumulate 150M XRP

XRP, the cryptocurrency associated with Ripple, has shown remarkable resilience and strong dip-buying demand, hinting at a potential long-term breakout. The cryptocurrency recently experienced its third dip to $1.9925, followed by a 7.40% surge, demonstrating classic dip-buying behavior. Currently trading at $2.3855, a MACD bullish crossover has reinforced the uptrend, with the next resistance level at $2.60 in sight.

XRP's performance against Bitcoin (BTC) has also been noteworthy. The XRP/BTC pair has neared early March levels, showing no signs of overextension. This suggests that XRP is maintaining its strength relative to Bitcoin, although it still moves in tandem with the broader market trends.

Despite these positive indicators, short-term volatility remains a concern. Profit-taking and risk-off sentiment could shake out weak hands, and an uptick in exchange reserves suggests increased selling pressure. If this trend continues, a retracement may be necessary before the next leg up, especially with Bitcoin still under short-term pressure. This makes another market-wide correction likely.

XRP's fundamentals remain strong, with whales adding 150 million XRP in the past two days and investors reallocating funds from BTC to XRP. However, sell orders in the perpetual market are rising, and weak spot demand, along with increasing retail distribution, could challenge whale efforts to push the price higher. Breaking the $2.60 resistance level won't be easy under these conditions.

On Binance, short orders dominated in March. Whales bought the $1.99 dip, triggering a short squeeze that pushed prices higher. A similar move could happen again, given continued whale accumulation. However, if Bitcoin fails to break $85K and another sell-off hits, shorting pressure could squeeze long holders, reversing momentum.

XRP's price closely follows Bitcoin on its 1D chart. Two dips to $1.99 in three weeks matched BTC falling below $80K. XRP's recovery has been stronger than BTC's, drawing investor interest, but if Bitcoin dips again, XRP could still revisit key support levels. The risk remains high as major BTC stakeholders are still underwater, and demand at key accumulation zones remains weak.

With Bitcoin facing resistance, XRP may retrace to $2.26 in the short term. However, if BTC drops below $80K, a retest of $2 or lower is possible – an opportunity short-sellers may capitalize on. Despite strong fundamentals, XRP remains susceptible to market-wide volatility, making a break above $2.60 resistance challenging unless Bitcoin reclaims key resistance levels and restores broader risk appetite.