Amid a period of market turmoil, the bulls of Ripple [XRP] acted swiftly. The price saw a notable surge, rising from a significant low of $2.60 to a closing figure of $3.05, marking a 5.35% increase.
The rapid recovery demonstrates a robust interest in buying the dip. Now that the volatility of January is in the past, what does the future hold for XRP in this unpredictable first quarter?
Reflecting on the Past Month
XRP started the New Year on a positive note with an 11% rise in a single day, following a challenging December which saw a 17% decline. By the middle of January, it reclaimed the $3 mark for the first time in seven years, serving as a just reward for patient long-term holders.
Despite an inevitable period of profit-taking, there were no significant pullbacks observed. This resilience triggered a strong Fear of Missing Out (FOMO) effect, attracting a staggering 200K active addresses in this month alone.
Furthermore, XRP whales continue to show strong interest, seizing opportunities presented by market downturns and adding an additional 120 million tokens to wallets holding between 100 million and 1 billion coins.
This action has propelled their total holdings to 10.33 billion, with 2.56 billion tokens included in their treasury since November.
It is not surprising that XRP rapidly shrugged off the “DeepSeek” Fear, Uncertainty, and Doubt (FUD), as its trading volume soared by 153% within just 24 hours. These indications underscore a prevailing sentiment of strong holding among stakeholders, laying the groundwork for potentially bullish months ahead.
Bolstered by this momentum, XRP may break through its previous all-time high and surge beyond $5 by the conclusion of the first quarter.
Nonetheless, a Significant Challenge Confronts XRP
It is undeniable that the volatility experienced in January has dampened the bullish sentiment that dominated the fourth quarter, when market participants were confident that high-cap cryptocurrencies would reach significant milestones and that President Trump would immediately address the concept of a strategic Bitcoin (BTC) reserve on his first day in office.
The market is moving in a manner contrary to mainstream expectations, keeping everyone on edge.
While XRP’s core fundamentals remain robust — evidenced by a healthy RSI, continued whale activity during market downturns, and the push from FOMO leading to a surge in active addresses — external sentiment continues to cast a long shadow that cannot be disregarded.
The recent but fleeting “DeepSeek” FUD incident sparked a brief but intense panic, offering a glimpse of the potential volatility that the cryptocurrency market may encounter in the upcoming months.
Be prepared for a significant test of resilience. If the sentiment of holding strong remains prevalent, XRP could surpass the $5 mark. However, any decline in confidence among stakeholders could pose a formidable obstacle.