XRP has experienced a significant sell-off in line with the broader crypto market, but it has managed to retain most of its impressive 300% gains from late 2024.
Despite recent price fluctuations, the altcoin is consolidating near key resistance levels, setting the stage for a potential breakout above the $2.50-$2.60 range.
XRP’s Key Decision-Making Zone
Currently, XRP is holding above its point of control (POC) at $2.30, a crucial level since the altcoin surpassed the $2 mark on December 1.
This position suggests that bulls are still in control of the price action. According to crypto trader Valeriya, XRP is in a critical zone, and if it holds above $2.15-$2.20, aggressive growth could follow, with the nearest target being $2.91, where significant selling liquidity is concentrated.
Technical Setup for a Bullish Breakout
Valeriya also pointed out that XRP’s recent price action is showing signs of a potential upward breakout.
Daan Crypto, another analyst, highlighted a triangle/pennant formation on XRP’s 4-hour chart, a pattern that typically has a higher probability of breaking upward during bullish market conditions.
Positive Sentiment Fuels Optimism
Beyond technical indicators, XRP’s ecosystem has seen several positive developments. Ripple’s president recently hinted at an XRP spot ETF approval, which could be a major catalyst.
Furthermore, Ripple CEO Brad Garlinghouse shared a photo with President-elect Donald Trump, fueling speculation that XRP could rally after Trump’s inauguration on January 20.
These events have contributed to a positive shift in crowd sentiment for XRP. According to Santiment, XRP’s sentiment score has risen, suggesting growing optimism among investors.
Potential for a New All-Time High
With XRP maintaining its position above the 200-day EMA and showing signs of a breakout above the descending trendline, the altcoin could soon target $2.42-$2.50 as the next resistance levels.
A confirmed daily breakout above $2.50 and $2.60 could pave the way for a new all-time high above $2.90.
As the market sentiment improves and XRP’s technical setup strengthens, many traders are watching closely for the potential for a significant rally.
