- XRP’s strong demand offsets selling pressure from large token unlocks.
- Key resistance at $3.00 could determine XRP’s next bullish breakout.
- Technical indicators signal potential recovery despite recent price retracement.
XRP has shown wild swings lately, surging to a high point before pulling back slightly. While flipping BlackRock and reaching the 162 billion market cap milestone recently, the question now is: can XRP keep this momentum going? Reports from Whale Alert about large token unlocks add uncertainty to whether this upward drive can be sustained in the short term.
Despite the volatility, the overall trend still looks positive, and analysts are forecasting a potential recovery to gain strength in March 2025. Traders are watching closely for key price levels that will indicate if XRP can maintain its current momentum.
Token Unlocks Challenge XRP’s Momentum
Significant XRP transactions reveal a potential headwind for sustained momentum. 400 million tokens were moved out of an unknown wallet, and 500 million were released from Ripple’s escrow. Furthermore, another 100 million tokens were unlocked from a separate unknown wallet.
These large releases raise questions about whether XRP can maintain its upward momentum. The increased token supply could create selling pressure, potentially slowing down or reversing the recent gains. However, XRP’s recent price surge suggests strong market demand might be strong enough to counteract the impact of these unlocks, allowing momentum to continue.
XRP Price Action and Momentum Indicators
Currently, XRP is trading around $2.60 after a rapid climb from $2.26. It briefly traded above $3.00, demonstrating strong upward momentum, before falling back, testing the strength of its support for maintaining that momentum.
Source: CoinMarketCap XRP’s market cap reclaimed $152 billion, a clear milestone reflecting strong momentum, with a 15.02% increase. Trading volume skyrocketed by over 500%, hitting $20.26 billion. This massive spike in volume suggests strong buying interest, which could be crucial for sustaining further momentum.
Related: XRP Coasts Higher on US Crypto Reserve Inclusion News, Analyst Eyes $5.85+
Key Price Levels for Momentum to Hold
XRP faces critical levels that will determine its next move. To the downside, $2.40 is a critical support zone, with $2.26 as additional backup. Falling below these levels could signal a loss of momentum and potential further declines.
On the upside, resistance between $2.85 and $3.00 represents a test of its ability to regain momentum. Profit-taking at this level has caused pullbacks. If XRP can decisively break above $3.00, the next major challenge is $3.20. Overcoming this resistance would be a strong signal of continued momentum.
Technical Indicators and Momentum Confirmation
XRP/USD daily price chart, Source: TradingView The Relative Strength Index (RSI) at 51.70 is currently neutral regarding momentum. Moving above 50 would confirm a bullish momentum continuation. Moreover, the MACD line crossing above the signal line suggests new upward momentum is building.
A green histogram further supports the possibility of renewed momentum. These indicators suggest a potential recovery of momentum if buying pressure to sustain momentum remains strong.
Momentum-Based XRP Price Forecast for March 2025
Coincodex analysts predict XRP will likely increase by 6.08% in March, potentially hitting $2.85, with an average price of $2.74. The projected ROI of 10.60% could attract long traders seeking to capitalize on momentum.
Related: XRP Analysis: Will XRP Make or Break its Current Support?
Despite a 15.51% drop in the past month potentially slowing momentum, signs of a trend reversal offer optimism for XRP’s near-term momentum outlook.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
