XRP Price on the Verge of a “Powerful Move” Above $2.90 as Optimism Surges in Sentiment Metrics
XRP’s Market Structure Signals a Run to New Heights
The market structure of XRP indicates that this altcoin is gearing up for a potential dash towards new all - time highs. Despite following the broader crypto market’s downward trend and experiencing a sharp sell - off, with its price dropping to $2.47, XRP has managed to retain the majority of the 300% gains it amassed in the latter part of 2024. Between January 7 and January 9, XRP avoided a more significant correction. It has been consolidating near its descending trendline, eyeing a possible breakout above the crucial resistance range of $2.50 - $2.60.
XRP in a Crucial Decision - Making Zone
While major cryptocurrencies such as Bitcoin (with a price drop of $93,805), Ether (down $3,208.00), and Solana (down $183.20) neared their previous swing lows in the past 24 hours, XRP fought hard to stay above $2.30. This $2.30 mark has been the point of control (POC) for XRP since it surpassed $2 on December 1. Maintaining a position above the POC implies that the bulls are still in command of the overall price movement.
Trader Insights
Valeriya, a crypto and forex trader, pointed out that the XRP price is currently in a critical decision - making zone. According to Valeriya, the upward rejection or bounce from the $2.15 - $2.20 level reveals the “intentions of major players.” The trader further stated, “If the support zone holds, aggressive growth is anticipated, with the nearest target being $2.91, where the liquidity of sellers is concentrated.” Valeriya also emphasized that traders should closely watch XRP’s price action as the “asset is getting ready for a powerful move.”
Similarly, Daan Crypto, a crypto analyst, believes that the XRP altcoin pair “can be an excellent trading opportunity.” Historically, XRP has adhered to most of its technical levels. Daan Crypto highlighted the formation of a triangle/pennant pattern on XRP’s 4 - hour chart. Such patterns tend to have a higher probability of breaking upward during bull markets.
Positive Developments in XRP’s Ecosystem Boost Sentiment
Promising News and Events
Beyond its favorable market structure, XRP’s ecosystem has seen a string of positive developments that could attract speculators. Ripple's president recently hinted that the approval of an XRP spot ETF could be “imminent.” Additionally, Ripple CEO Brad Garlinghouse's recent sharing of an image with President - elect Donald Trump has sparked speculation about an XRP rally following Trump’s inauguration on January 20.
Crowd Sentiment Analysis
These events have had a positive impact on XRP’s crowd sentiment. Data from Santiment shows an increase in the positive sentiment score for XRP. Although the index was much higher in late November 2024, it is currently on an upward trajectory again.
Technical Outlook for XRP
From a technical standpoint, XRP has been converging within trendlines over the past few weeks. The price has remained above the 200 - day EMA level. If XRP manages to break above the descending trendline, it will likely attempt to surpass the liquidity levels around $2.42 and $2.50. This could potentially fuel a rally towards a new all - time high above $2.90.