Ripple’s XRP climbed above $3 this week but briefly dipped to the $2.95 level on Wednesday, as CoinGecko reveals. The leading altcoin remains in the red for seven consecutive days, going from a low of $2.36 to a high of $3. It spiked 26.5% in a week, generating stellar profits for investors in a short period.
Now that XRP has reached the $3 price target, will it continue to surge in the charts further? In this article, we will explain which direction Ripple’s native token could move next. This can help you take an informed decision on whether to take an entry position or wait for the dips.
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Litmus Test For XRP Beyond $3
XRP at $3 remains tricky as several investors took entry positions way back in 2016-2017 at around the same price. It hit an all-time high of $3.40 in January 2018, never to return to its previous glory again. It’s been seven years in the downturn, and early holders are finally waiting to break even and jump ship.
If a round of sell-off occurs from early investors, XRP’s price could face a litmus test above the $3 level again. The development could skirt the altcoin’s ambition of breaching its ATH of $3.40. Ripple has always headed south whenever it climbed above the $3 range, and history could repeat.
On the Brighter Side of the Markets
While that was a bearish case scenario, the good thing is that the markets are in a different situation now. Bulls are mostly in control of the markets with the backing of institutional giants through ETFs and ETPs. This situation was non-existent during the previous cycles, and the markets depended only on the broader macroeconomic factors.
Also Read: Your $1K In Ripple (XRP) Could Explode—If It Hits $5 Or $10
Now that Bitcoin is pumping and hitting new all-time highs, the chances of XRP and other altcoins soaring remain high. If Ripple’s native token manages to breakout from here, it could breach its ATH of $3.40. Therefore, taking a risk with an entry position now and waiting till $3.50 cannot be ruled out.