XRP (XRP-USD) is hovering just below $3, and this basic number has turned into one of crypto’s biggest debates. Many chart-watchers are now focused on the Fibonacci targets at $3.59, $4.63, and even $5.67. These price predictions come from deep technical levels that traders often treat like milestones on the road to the next breakout.
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Right now, XRP is camped around $2.95, which lines up with a key Fibonacci retracement. This level often acts as a springboard if buyers hold their ground. But there is also a safety net at $2.55, where bulls will want to defend at all costs if momentum slips.
XRP Faces Heavy Resistance
Before anyone starts celebrating, XRP still has to clear some walls in front of it. The first test sits at $3.35, followed by $3.59, a level many traders see as the true gatekeeper for higher moves. Break through with conviction, and suddenly $4.63 and $5.67 are not just fantasy numbers.
The broader crypto market has been shaky but not broken. Bitcoin and Ethereum have done their usual volatile dance, while XRP has shown resilience. That suggests that both retail and institutional investors are quietly positioning for a bigger move if resistance finally cracks.
Short-Term Pressure Keeps Building
The pattern on daily charts has been tight. XRP has been stuck in a triangle since July’s peak at $3.80, pressing against descending resistance. Traders are now watching the $3.05 to $3.10 zone. A clean break above that would mark the first higher high in weeks and could shift sentiment back in favor of the bulls.
Meanwhile, inflows are showing signs of life. Data this week revealed a $17.6 million net inflow, one of the strongest in August. It is not enough to fuel a breakout on its own, but it does show accumulation interest is still there. Moreover, sustained inflows would give XRP more strength to fight overhead supply.
Long-Term XRP Holders Stay Confident
Despite a 20 percent drawdown from the summer high, long-term holders are sitting on solid profits. On-chain data shows their conviction remains intact. Net Unrealized Profit/Loss levels sit well below the euphoric extremes that usually mark the end of a cycle.
In contrast, short-term holders have been forced out. Many are underwater or selling near breakeven, a classic case of capitulation. This churn often clears weak hands and sets the stage for stronger rallies later. For now, the divergence between strong long-term conviction and short-term pain suggests consolidation rather than collapse.
Market Signals Leave Room for XRP to Run
Other on-chain indicators back the case that XRP’s rally is not over. The MVRV Z-Score, which measures if price has run too far ahead of fundamentals, sits in the middle range. In past bull markets, cycle tops only came when the score spiked to extremes. That has not happened yet.
Realized price data also shows veteran holders are not distributing. Old coins are staying put, while newer investors are resetting lower. That reduces sell pressure and keeps the long-term structure healthy. For XRP, it means the real question is whether demand returns fast enough to absorb turnover and push the price past $3.05.
Overall What Does This Mean?
Put together, the market looks like it is in a consolidation phase. If XRP can hold above $2.80 and push through $3.05, the stage is set for higher targets. Fail to defend $2.75, and the door opens to $2.50 or lower.
Moreover, technicals, inflows, and long-term conviction are aligning. The ball is now in the bulls’ court. Whether they can turn this pressure into another surge will decide if the dream of $5 XRP stays alive.
At the time of writing, XRP is sitting at $2.9304.
