XRP Price Prediction: Will Ripple Break the $2.9 Resistance and Aim for a New All-Time High in 2023?

After experiencing a 12% surge on Wednesday, XRP’s price rally continued on Thursday with a 7% rise, continuing the momentum that began during the New Year’s Day celebrations. This rally has caught the attention of investors, with long-term holders (LTH) displaying strong accumulation patterns, potentially signaling that XRP could break past the $2.9 resistance level and aim for a new all-time high.

XRP On-Chain Activity Shows Dominance of Long-Term Holders, Buying Pressure at Top Exchanges

A wave of profit-taking occurred on Wednesday as investors booked over $1 billion in realized profits — the highest level since December 16. According to data from Santiment, this profit-taking trend was driven by investors who had held XRP for the past 90 days, as indicated by a sharp spike in the Dormant Circulation (90d) metric. This behavior suggests that short-term holders are cashing in on their gains, but the LTHs are taking a different route.

LTHs have been accumulating XRP, absorbing the sell-pressure from these short-term investors, as reflected by an increase in the Mean Coin Age metric. This metric, which measures the average time XRP tokens have stayed in their current address, shows that accumulation is currently outweighing distribution.

This trend is also supported by XRP’s net flow and volume across top crypto exchanges. Binance, OKX, Bitstamp, and Bybit have all shown net outflows, signaling that buying pressure is dominant. The only exchange with net inflows was Coinbase, which adds further weight to the notion that investors are holding rather than selling XRP.

XRP Breaks Out of Symmetrical Triangle Pattern, Eyes $2.9 Resistance

XRP’s price action is continuing to build on its bullish momentum, with the cryptocurrency breaking out of a symmetrical triangle pattern on Thursday. This technical formation typically signals that a breakout could lead to a strong move in one direction. Following the breakout, XRP is now eyeing the $2.9 resistance level, a key barrier that could pave the way for further gains if breached.

This rally could strengthen if XRP experiences a slight downturn and subsequently bounces off the triangle’s upper boundary line, which would act as support. On the daily chart, the Relative Strength Index (RSI) is above its neutral level, signaling that bullish momentum remains dominant. However, the Stochastic Oscillator (Stoch) is in the oversold region, suggesting that a potential correction might be on the horizon.

SEC Appeal Deadline Looms: Pro-Crypto Chair Paul Atkins Could Influence XRP’s Future

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to be a significant factor in XRP’s price movements. However, with Paul Atkins, a pro-crypto figure, potentially set to assume the role of SEC Chair on January 20, analysts speculate that the agency may not pursue its appeal against Judge Analisa Torres’s ruling in the case. This development would be a positive catalyst for Ripple, as the SEC faces a January 15 deadline to file the opening brief for its appeal.

What’s Next for XRP? Breaking $2.9 or Correcting Toward $1.35

For now, XRP is firmly in a bullish position, with accumulation from LTHs helping to sustain upward momentum. If XRP continues to rise and manages to breach the $2.9 resistance level, it could pave the way for even higher prices. However, if the market turns and XRP closes below the triangle’s lower boundary line and the 50-day Simple Moving Average (SMA), it could invalidate the bullish thesis and send the price toward the $1.35 level.

As long as buying pressure remains dominant and the broader market sentiment stays positive, XRP’s prospects look promising in the short to medium term. Traders and investors should keep a close eye on the $2.9 resistance level, as a breakout here could set the stage for a new rally in 2025.