XRP Breakout Signal Validated Amid Caution from Top Trader

XRP has achieved a significant technical milestone, breaking through a resistance level that has held it back for months. A respected trader in the crypto world has acknowledged the move but also emphasized the need for caution as excitement builds around Ripple’s native token.

On July 18, renowned trader DonAlt, who is widely regarded for accurately identifying trend reversals, highlighted XRP’s decisive move past the $2.72 mark. This level had been a ceiling for six months, preventing upward momentum. With XRP now trading above $3.60, DonAlt shared that he remains committed to his target of $6.90.

The breakout follows a prolonged phase of range-bound movement between $2.05 and $2.72. XRP’s shift out of this zone was not only immediate but also backed up by strong follow-through on technical charts. DonAlt described the trade as a once-in-a-lifetime opportunity, emphasizing that such clean breakouts are rare for a large-cap cryptocurrency.

However, he did not shy away from expressing caution. As XRP continues to surge, he warned that the potential risks grow in parallel. The higher the price climbs, the higher the likelihood of drastic pullbacks. DonAlt urged investors to be mindful of position sizing and avoid overextending themselves in pursuit of late gains.

He advised that now is not the best moment for impulsive entries into the market. Instead, patience and strategic risk management should guide decisions, especially in an environment where volatility is increasingly present.

His sentiment was shared in a public update, where he stated, “This setup was obvious, and I’m sticking to it. I’ll continue holding because I believe there’s still more room to climb. But it’s essential to remember, as we push higher, risk scales up just as quickly.”

Traders and analysts have taken note of XRP’s upward movement, especially considering the context of recent rumors around a possible XRP ETF and other bullish market signals. These factors seem to have fueled broader optimism about Ripple’s prospects, pushing XRP within touching distance of its historical high of $3.84 from the last market cycle.

Should XRP surpass that threshold, DonAlt’s prediction of a rally to $6.90 could materialize sooner than expected. However, traders entering now must understand that such moves often attract heightened volatility and complex price behavior that doesn’t make for easy gains.

Currently, XRP remains one of the top performers in the crypto space, exhibiting price action that indicates market strength. As of the latest data, it trades comfortably above the $3.60 level, a benchmark it hasn’t reached in over two years. The next major test lies just ahead, and the market is watching closely to see whether XRP can sustain this momentum or if corrections will follow.

While the technical indicators are pointing upwards and trader sentiment appears optimistic, even seasoned professionals like DonAlt urge restraint and calculated decision-making. XRP’s journey continues, but its road ahead comes with both opportunity and increased exposure to risk.

Related: XRP Price: $12M Max Pain for Bears

The crypto market remains highly dynamic, and XRP’s recent rally is a testament to how quickly sentiment and setup can change. For long-term holders, this could mark the beginning of a significant chapter, while for short-term players, caution is paramount as the asset reaches elevated levels.