Is HODLing XRP the right move for the altcoin’s investors now?

Is HODLing XRP the right move for the altcoin's investors now?

Table of Contents

  • XRP has a track record of rebounding when BTC reaches its peak
  • If the right factors align, the $4 target could be within reach soon

XRP The rally above $3, driven by whale accumulation, rewarded patient investors, but holding steady has not been easy. With 53% year-to-date growth, it’s clear that investors are divided – do we lock in the gains now or stay the course for greater rewards?

The age-old dilemma of a bull market

Among high-cap companies, XRP stands out with its 40% monthly gain, with more than half of that coming in the new year alone. While this indicates a strong rally, it also indicates a rapid rally – perhaps too much, and too soon. The Relative Strength Index seems to support this, as it jumped from neutral to overbought territory in just three days.

In markets like these, taking profits is almost inevitable.

After a 53% surge in XRP in less than three weeks, it is no surprise that traders are withdrawing their funds. In fact, in the last two days, XRP inflow to Binance has risen to nearly 350 million – a staggering 1,567% rise.

Streaming XRP to Binance

Source: Cryptoquant

However, here is where it gets interesting – despite the profit taking, whales are still holding on. About 4 billion dollars Accumulated Since Trump’s last pump, the expected “massive” sell-off has not materialized. It is clear that these whales are not looking for a quick win, but rather are playing a long-term game.

If this trend continues, their strategy could pave the way for a strong push towards $4, making holding XRP a smart move for those looking for long-term rewards.

XRP is in economic imbalance

As XRP rose above $3 with a 17% jump, to $3.50 – just 11% below its all-time high seven years ago – it was then down 8% at press time. This decline came as market dynamics shifted, as supply exceeded demand, leading to economic imbalance.

Now, selling sentiment dominates the perpetual market, as indicated by buy/sell ratewhich gives the shorts a clear advantage. The result? $8.44 million in long liquidations.

It is clear that the futures market is getting riskier for XRP holders. And yOthers, only open interest (OI) has decreased By 0.70%. This means that more long positions may soon be shortened in the coming days.

Why? In the short term, volatility may increase as investors focus on Bitcoin with Trump’s pumping in full swing. As capital moved from XRP to BTC, the XRP/BTC pair also turned red, indicating a shift in market focus.

Unless whales again enter the accumulation phase, we may see more profit taking and forced closing of long XRP positions. Therefore, caution is needed in the derivatives market.

Pisces flocked to the exchangePisces flocked to the exchange

Source: Cryptoquant


Realistic or not, here it is Market cap of XRP in BTC conditions


However, in the spot market, the lack of strong selling by whales is a sign of strong conviction.

if Bitcoin At the peak and profit-taking slows, XRP could see a push toward $4, making HODLing a smart move in the long term.

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