XRP price has started consolidating at $2.51 with an increase of over 500% in 2024. This development attracts attention as Ripple 
$3 approaches its all-time high (ATH) price of $3.85. Despite years of legal battles with the SEC, market dynamics support XRP’s upward potential. What could happen in the market if the XRP price reaches $3?
Large Liquidation Risks and Market Effects
If XRP reaches the $3 level, significant short position liquidations may occur in the market. According to Coinglass data, the total volume of liquidations at this level is estimated to be $320 million. Particularly, the intense trading activities of traders who have been waiting for this price level for years could increase market volatility.
Market analysts predict that if XRP surpasses $3, new targets could be set at $3.81, $4.40, and $4.98. These levels may establish new support points in XRP’s market movements. The rapid closure of short positions could increase buying pressure, triggering an upward movement in prices. Simultaneously, this situation could affect the overall liquidity of the market and open doors to various strategies.
Technical Analysis and XRP’s Future Potential
Post-launch analyses of Ripple’s RLUSD show a positive outlook for XRP’s price. Technical indicators suggest that XRP may test higher levels following its consolidation period. The $3.81 level is considered a new target by analysts. Buying pressure during this process could lead XRP to revisit its ATH levels.
Additionally, the decreasing uncertainties caused by the ongoing battle between the SEC and Ripple have positively influenced market sentiment. Gary Gensler’s resignation announcements and macroeconomic developments are creating a favorable environment for XRP. All these factors are critical elements that will shape XRP’s price.
In conclusion, if XRP reaches $3, significant changes in market dynamics may occur. Large liquidations, buying pressure, and positive forecasts in technical analyses support XRP’s future upward potential. However, caution is necessary as investors need to closely monitor market conditions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
