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XRP’s market structure suggests that the altcoin is gearing up for a run to new all-time highs.
XRP (XRP) has followed the broader crypto market trend by selling off sharply, but the altcoin still holds the bulk of its 300% gains, which it accumulated in the last part of 2024. The altcoin managed to avoid a deeper correction between Jan. 7 and Jan. 9, as it continues to consolidate near its descending trendline, eyeing a potential breakout above the key resistance range between $2.50 and $2.60.
XRP 1-week chart. Source: Cointelegraph/TradingView
XRP price sits in a key decision-making zone
While majors like Bitcoin (BTC), Ether (ETH), and Solana (SOL) threaded to previous swing lows over the past 24 hours, XRP fought to hold a position above $2.30, which is the point of control (POC) for the altcoin since it breached $2 on Dec. 1. A position above POC implies that bulls remain in control of overall price action.
XRP 4-hour chart analysis by Valeriya. Source: Cointelegraph/TradingView
Valeriya, a crypto and forex trader, said that the XRP price is currently in a key decision-making zone. The trader explained that the altcoin’s upward rejection or bounce from the $2.15 to $2.20 level indicates the “intentions of major players.” The trader added,
“If the support zone resists, aggressive growth is expected with the nearest target of $2.91, where the liquidity of sellers is concentrated.”
Additionally, Valeriya mentioned that traders should closely monitor XRP’s price action as the “asset is preparing for a powerful movement.”
Likewise, Daan Crypto, a crypto analyst, said that the altcoin pair “can be great to trade” as XRP has historically respected most of its technical levels. The trader highlighted the formation of a triangle/pennant formation on XRP’s 4-hour chart, suggesting that these types of patterns have a higher probability of breaking upward during bull markets.
Related: Ripple’s RLUSD stablecoin to list ‘imminently’ on more exchanges — Exec
XRP crowd sentiment hints at optimism
Besides a favorable market structure, XRP’s ecosystem has also witnessed a series of positive events that could lure in speculators. Ripple’s president recently stated that an XRP spot ETF approval could be coming up “very soon.” Meanwhile, Ripple CEO Brad Garlinghouse recently shared an image with President-elect Donald Trump, which stirred the likelihood of an XRP rally after Trump’s inauguration on Jan. 20.
XRP’s crowd sentiment analysis. Source: Santiment
These factors have improved the crowd sentiment for XRP, as data from Santiment highlighted a rise in the positive sentiment score. It is important to note that the index was much higher during the end of November 2024, but it is currently improving again.
XRP 4-hour chart. Source: Cointelegraph/TradingView
From a technical perspective, XRP has converged within trendlines over the past few weeks, with the price maintaining a position above the 200-day EMA level. With a potential breakout above the descending trendline, the altcoin will likely attempt to clear liquidity levels around $2.42 and $2.50, which may fuel a rally toward a new all-time high above $2.90.
However, a confirmed daily breakout above resistance levels is $2.50, and $2.60 remains critical.
Related: Price analysis 1/8: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, AVAX, SUI, LINK
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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