What will happen if the price of XRP reaches $3?

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The price of XRP is currently consolidating around $2.5, in a peak state. Although it reached an all-time high of $3.85 in early January 2018, the token has struggled for years amid the battle between the SEC and Ripple. Fast forward to today, after Donald Trump’s victory and Gary Gensler's announcement of resignation, Ripple's price has surged significantly to $2.57. These factors may ensure further price increases. It is worth noting that the jump to $3 in early 2018 lasted only a short time before entering a multi-year consolidation phase.

The current situation suggests that the price of XRP may rise soon, possibly reaching $3. If this happens, there will be an unprecedented wave of short liquidations, as traders have been anticipating this moment for years. A few will make huge profits, but the rest, hoping for the Ripple token price to soar further, will incur losses as $320 million worth of shorts will be liquidated.

A report by Coinglass on December 2 showed that the short liquidation amount was $42.81 million, while the long liquidation amount was $38.81 million. Due to the higher short liquidation amount, those expecting the price of Ripple to fall will incur losses. Similarly, on December 3, 2024, the short liquidation amount was $44.15 million and the long liquidation amount was $42.09 million, leading to many short liquidations. However, as long liquidations increase, some traders who were over-leveraged during the downturn also face losses.

According to predictions from many cryptocurrency analysts regarding the price of XRP, Ripple is expected to experience a significant rise, with the closest target price being $3. However, this will also lead to a massive liquidation of about $320 million, causing many to incur losses. This will make short liquidations more severe than long liquidations, but it will also intensify buying pressure, potentially leading to further increases in the price of Ripple. Currently, the price of Ripple is consolidating around $2.5, but technical indicators suggest a future target price of $3.81 and above, setting a new high.

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