The recent rally of XRP, Ripple’s native cryptocurrency, has stalled this week as the broader crypto market faces turbulence.
Popular meme coins like TRUMP and Fartcoin have also seen sharp declines, raising questions about the near-term trajectory of XRP.
Why XRP, TRUMP, and Fartcoin Dropped
Lack of Crypto Mentions in Trump’s Inaugural Address: Investor enthusiasm waned after Donald Trump’s inaugural speech omitted any mention of cryptocurrencies, contrary to market expectations.
Sell-the-News Effect: XRP and meme coins had surged in anticipation of the inauguration. Following the event, a common “sell-the-news” trend triggered sell-offs.
Global Economic Concerns: Upcoming interest rate decisions from the Bank of Japan (BoJ) and the Federal Reserve have heightened market uncertainty. A BoJ rate hike could affect liquidity flows, impacting risk assets like cryptocurrencies.
Bullish Outlook for XRP
Despite the recent pullback, crypto analyst Ali Martinez remains optimistic about XRP’s long-term potential.
According to Martinez, a symmetrical triangle pattern formed since 2018 suggests a possible price surge to $15—a 355% increase from current levels.
Key Catalysts for XRP’s Upside:
- Potential ETF Approval: An XRP-focused ETF could drive institutional interest and liquidity.
- Ripple Ecosystem Growth: Expanding use cases, including RLUSD adoption and new XRP-based projects, strengthen its fundamentals.
- Technical Indicators: XRP recently formed a golden cross on the weekly chart, a bullish signal where the 50-week moving average crosses above the 200-week moving average.
Technical Analysis
XRP’s weekly chart shows a bullish pennant pattern with a flagpole height of approximately 500%. If the pattern plays out, XRP could break above $5 and eventually reach $15 in the long term. However, a drop below $1.93 would invalidate this bullish forecast.
While XRP faces short-term resistance at $5, its long-term outlook remains positive due to strong technical patterns and growing adoption.
However, market volatility and macroeconomic factors could influence its trajectory. Investors should monitor key support levels and upcoming developments like the potential ETF approval for further insights.
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