XRP price expects a Domino effect to achieve the dream of $3.30 – Here’s how

The price of XRP is up about 1% in the last 24 hours, but this move alone does not mean much. What matters most is what happens beneath the surface.

Short-term traders are exiting, mid-range holders are starting to return, and XRP ETF flows are quietly turning positive again. Together, these changes set the stage for a potential domino effect, where a small technical catalyst could lead to a much larger move. Maybe at the level that XRP announced last year.

Condemnation replaces speculation as XRP holders change

One of the clearest changes is seen in XRP’s HODL wave. The HODL Waves indicator shows how long to hold coins, which helps separate short-term traders from long-term holders.

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In the past month, the speculative supply has decreased dramatically. The number of takers in the day-to-week group fell from about 1.5% of the offer to 0.76% between January 9 and January 26.

The week-to-month range decreased from 5.71% to about 2.07%, as of December 27. Meanwhile, long-term holders are doing the opposite.

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The 6 to 12 month category increased from 19.5% to 22.3%. In addition, the one to two year category increased from 11.73% to 11.92%.

This is important because hedge funds typically exit near local lows, while debt funds tend to build silent positions. The flow of XRP ETFone of the biggest indicators of conviction, supports this view. After last week ended with net flows, the current week started on a positive note, with new flows back.

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In simple terms, money leaves quickly, and patience money arrives.

The price chart reveals a domino setup, not an immediate takeoff

On the price chart, constitutes XRP A major head and shoulders reversal structure begins in early November. At first glance, the installation seems unrealistic because the neckline is much higher than the current price.

From there, XRP only needs a move of about 31% to reach the neckline. If a collision occurs, the measured increase will be around 33%.

It may seem unlikely, but the domino effect does not start at the neck. The first catalyst is momentum. XRP recently lost its 20-day moving average on January 17th. The exponential moving average, or EMA, gives more weight to recent prices and helps track the strength of a short-term trend.

The recovery of the 20-day EMA only requires a daily movement between 3-4%. The last time XRP retook the same GSI move, on January 2nd, the price rose by about 26%. This kind of push could help XRP reach the bottleneck faster.

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Momentum support is already starting to appear via the RSI. The relative strength index, or RSI, measures whether price momentum is doubling or weakening.

Between the end of November and January 25, the price of XRP made a lower low, while the RSI indicator formed a higher low. This bullish divergence often indicates that selling pressure is beginning to fade, even before the price rises.

Here’s how the dominoes start:

The Relative Robot Index stabilizes → the EMA recovers → the momentum rises → the neck appears → the neckline breaks, which makes the crash.

The whale accumulation supports the final XRP price towards $3.30

Large transporters appear to localize this sequence. For example, wallets containing between 10 million and 100 million XRP tokens increased their cumulative balances from approximately 11.16 billion to 11.19 billion tokens after January 25th.

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This purchase began shortly after the bullish divergence appeared, suggesting that the whales are responding to the same change in momentum that appeared on the chart. The accumulation is cautious and not aggressive, but in line with the broader trend of conviction.

Therefore, price levels are important.

The XRP price must first recover its 20-day EMA value. Above that, resistance is located near the $2.05 and $2.20 levels. A stop and stop above $2.52 will bring the neck in the fire.

If the neckline is broken, the domino effect is complete, opening the way towards $3.30 (especially the level of $3.34), which is a path of 33% from the head to the neck. Also, this was one XRP price levels That was achieved last year, in October.

The structure weakens below $1.80 and is completely invalidated below $1.76.

At the moment, XRP is not distributed. But the sequence leading to the escape is quietly taking shape.