What would happen if the XRP price reaches 3 dollars?

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

Current conditions suggest that the XRP price may soon rise, potentially reaching 3 dollars. If this happens, there will be an unprecedented wave of short liquidations, as traders have been eyeing this moment for years. A few will reap massive profits, but the rest who hope for further surges in the Ripple token price will incur losses, as shorts worth 320 million dollars will be liquidated.

Coinglass's report on December 2 shows that the short liquidation amount is 42.81 million dollars, while the long liquidation amount is 38.81 million dollars. Due to the higher short liquidation amount, those expecting the price of Ripple to decline will incur losses. Similarly, on December 3, 2024, the short liquidation amount was 44.15 million dollars, while the long liquidation amount was 42.09 million dollars, leading to many short liquidations being closed. However, as the long liquidation amount increases, some traders who were over-leveraged during the decline also face losses.

According to many cryptocurrency analysts' predictions for the XRP price, Ripple is expected to see significant increases, with the nearest target price at 3 dollars. However, this will also lead to a massive liquidation of approximately 320 million dollars, 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 Ripple's price. Currently, Ripple's price is consolidating around 2.5 dollars, but technical indicators suggest a future target price of 3.81 dollars and above, setting a new high.

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