XRP Price Analysis: Will Bulls Push Above $2.50 to Spark a New Rally?

XRP continues to draw attention as it navigates a critical decision-making zone amidst broader market turbulence. Despite recent selling pressure across the cryptocurrency market, XRP has maintained the majority of its impressive 300% gains accumulated during late 2024. With its price consolidating near a descending trendline, the altcoin is poised for a potential breakout above its key resistance zone of $2.50 to $2.60.

XRP Holds Firm Amid Market Downturn

While major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) revisited previous swing lows, XRP demonstrated resilience by maintaining its position above the $2.30 mark. This price level serves as the point of control (POC) for XRP, a critical indicator of where trading volume has been most concentrated since its breach of the $2 threshold on December 1. A position above the POC signals that bullish sentiment remains dominant in XRP’s overall price action.

Key Technical Patterns Highlight Breakout Potential

On XRP’s 4-hour chart, traders have identified a triangle or pennant formation, a technical pattern commonly associated with continuation during bullish market conditions. Valeriya, a seasoned crypto and forex trader, emphasized the significance of the $2.15 to $2.20 support zone, noting that a bounce from this level could indicate the intentions of institutional players.

“If the support zone resists, aggressive growth is expected with the nearest target of $2.91, where the liquidity of sellers is concentrated,” Valeriya stated.

Another analyst, Daan Crypto, highlighted XRP’s historical tendency to respect technical levels, adding that the current market structure makes the altcoin pair an appealing choice for traders. The convergence of trendlines over recent weeks, coupled with XRP’s ability to maintain its position above the 200-day EMA, further reinforces its bullish potential.

Liquidity and Sentiment Support XRP’s Bullish Case

From a liquidity perspective, XRP faces immediate targets between $2.42 and $2.50. Clearing these levels could trigger a rally toward $2.90 and beyond, potentially marking a new all-time high.

On the sentiment front, XRP has seen growing optimism within its ecosystem, bolstered by a series of positive developments. Ripple’s president recently hinted at the imminent approval of an XRP spot ETF, a milestone that could significantly boost institutional interest and trading volume. Adding to the excitement, Ripple CEO Brad Garlinghouse was photographed with President-elect Donald Trump, sparking speculation about potential political backing for Ripple’s initiatives.

Santiment data also highlights an uptick in XRP’s positive sentiment score, reflecting growing investor confidence. While sentiment is yet to reach the heights seen in late November 2024, the improving trend aligns with XRP’s robust technical outlook.

Critical Levels to Watch

To ignite a fresh rally, XRP must achieve a confirmed daily breakout above the $2.50 and $2.60 resistance levels. Success at these thresholds would likely clear liquidity above and set the stage for a surge toward $2.90, where significant selling pressure resides. Conversely, failure to hold above the $2.15 to $2.20 support zone could open the door to further downside risk.

As XRP consolidates in this decision-making zone, all eyes are on the altcoin to determine whether it will leverage its bullish momentum to achieve new highs or face renewed pressure from market bears.

Related Articles