XRP Price Rally Fails to Overcome Resistance at $1.45

XRP has experienced a significant surge in value over the past few days, rising 6% to reach $1.40. This move comes after several recent developments have bolstered the cryptocurrency's prospects, including partnerships with key players such as Rakuten and Kyobo Life.

One of the primary drivers behind XRP's rally is its growing institutional adoption. The cryptocurrency has seen a substantial influx of investment in its exchange-traded funds (ETFs), with inflows reaching $17.6 million on Wednesday, marking one of the largest daily increases since February 6. Additionally, whale accumulation on-chain has reached a 10-month high, indicating that larger holders are buying XRP alongside the ETFs.

However, despite this momentum, XRP is facing significant resistance at $1.45. A substantial portion of the cryptocurrency's circulating supply – approximately 36.8 billion XRP, or around 60% of the total – is held at a cost basis of $1.44, according to Glassnode data. This means that millions of wallets are sitting on losses and waiting for the first chance to break even and exit, which could stall any rally.

For XRP to finally break through this barrier, several conditions must be met. The CLARITY Act must pass committee, Bitcoin must hold above $75,000, and buying volume must remain elevated long enough to overcome the wall of breakeven sellers. While a passing of the CLARITY Act would provide significant clarity for XRP's institutional adoption, it remains uncertain whether this will be sufficient to propel the cryptocurrency beyond its current resistance level.