Ripple (XRP) is steadily building momentum as its price reached the crucial $3 resistance level, igniting enthusiasm across the market.
This upward trajectory marks a pivotal change in market dynamics, with XRP demonstrating resilience and the potential for a breakout looming. Backed by increasing buying interest and promising technical indicators, this crypto is positioning itself for a potentially decisive upward surge.
Traders are keeping a close eye on XRP’s price movement, as a successful breakout above $3.4 could solidify the bulls’ dominance and draw in even more interest. On the other side, a rejection at this level might lead to a strategic reevaluation by market participants. So where is the price of Ripple (XRP) going next, and what can we expect from the rest of January 2025?
Today, Crypto Lists will discuss Ripple (XRP) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Bulls control the price
Ripple (XRP) has experienced significant price movements in the last two months, largely influenced by political developments and regulatory expectations. Following Donald Trump’s victory in the U.S. presidential election, XRP’s value surged by approximately 400%, reaching price levels of $2.90. This increase was driven by investor optimism for a more crypto-friendly regulatory environment under the anticipated leadership of Paul Atkins at the Securities and Exchange Commission (SEC).
Additionally, Ripple’s legal victories, including a reduced fine from the SEC, further boosted investor confidence. However, in late December, XRP’s price declined by approximately 26%, falling to just under $2.02, as traders locked in profits and awaited concrete regulatory changes. This trading week XRP’s price has built significant strength again, with bulls pushing it above the key $3 resistance level for the first time since January 2018. The next mark in sight is the all-time high registered back then of $3.4 (according to CoinGecko). This rally comes on the heels of massive whale accumulations, as well as other possible reasons that we have discussed here.
It is important to say that the number of massive transactions with a value of over $1 million has hit 341 in the past 24 hours, which is a substantial increase compared to the previous days. Furthermore, technical indicators, particularly the Relative Strength Index (RSI), highlight that buyers have taken control of the market. The RSI has climbed decisively above the 50% mark and now sits firmly in the overbought zone, signaling robust bullish momentum. This upward movement in the RSI reinforces the narrative that the bulls are steering the market, with their influence growing stronger as the indicator continues to rise.
Outlook for XRP
The XRP community is abuzz with excitement as data from the network reveals a surge in large-scale transactions. On-chain analyst Ali Martinez highlighted on X (formerly Twitter) that the network has recently seen a notable increase in transactions exceeding $1 million, signaling heightened activity and interest. Interestingly, these $1 million transactions are primarily attributed to large holders, or “whales”—market participants who possess significant volumes of XRP tokens. This activity serves as a crucial indicator of developments within the XRP ecosystem, suggesting that high-value transfers are taking place across the network.
Analyst Ali Martinez highlighted that within 24 hours, Santiment had spotted 341 transactions worth over $1 million. This increase in usage signals growing confidence in the XRP network, especially for these whales. This could positively affect market sentiment and potentially lead to further increases in XRP’s price as other investors follow suit. Crypto analysts say that a successful break above $3.50 resistance could set the stage for a more sustained rally, opening the door to higher price targets. If the bulls manage to maintain control and surpass this level, the market may experience a surge of buying interest as traders look to capitalize on the breakout.
While the outlook for Ripple is optimistic, there are still significant risks to consider. The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is still not over and the outcome of this appeal could have significant implications for XRP. It’s also important to note that the cryptocurrency market is highly volatile, and actual outcomes may differ from predictions. Investors should conduct thorough research and consider their risk tolerance before making investment decisions.
Technical analysis for Ripple (XRP)
Ripple (XRP) has advanced from $0.49 to $3.02 since November 04, 2024, and the current price stands at $2.94. A break above the $3.50 level would indicate that XRP could probably test the price level at $4. As long the price of XRP is above the line that I marked on the chart below, there is no risk of a bigger sell-off.
Important support & resistance levels for Ripple (XRP)
On this chart (the period from June 2024), I marked important support and resistance levels that can help traders understand where the price could move. Ripple (XRP) is steadily building momentum and if the price advances above $3.50, the next target could be an important resistance level at $4. The strong support level is $2.50, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $2. If the price drops below $2, which also represents an important support level, the next target could be located around $1.50.
What speaks for the rise in the Ripple (XRP) price
Ripple (XRP) whales increased their activity this trading week, which demonstrates renewed interest and confidence in XRP, but investors should keep in mind that cryptocurrency markets are notoriously volatile, and while positive developments can trigger substantial price increases, they also carry potential risks. According to the latest news, Santiment had spotted 341 transactions worth over $1 million. This surge in activity among major holders supports the growing bullish sentiment around XRP, hinting that key players in the market may be preparing for further price increases. Ripple (XRP) could easily advance above the current price levels, especially if Bitcoin and other major cryptocurrencies show positive developments.
What indicates further downfall for Ripple (XRP)
The downfall of XRP can be influenced by a wide range of factors, including negative rumors, market sentiment, regulatory developments, technological advancements, and macroeconomic trends. Even though Ripple scored a partial victory last July by having XRP classified as a non-security, the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is still not over. The highly volatile nature of the cryptocurrencies may scare investors again to sell XRP if some negative news happens and because of this, investing in XRP involves a significant degree of unpredictability and substantial risk.
What do analysts and experts say?
Ripple (XRP) has seen remarkable price swings over the past two months, driven primarily by shifting political dynamics and evolving regulatory expectations. After Donald Trump secured victory in the U.S. presidential election, XRP’s value skyrocketed by nearly 400%. This momentum carried into this week, with the cryptocurrency surpassing the $3 mark, reaching new highs and fueling market excitement. Crypto analyst Ali Martinez noted that within 24 hours, Santiment detected 341 transactions exceeding $1 million, highlighting a surge in activity among large XRP holders, or “whales.” This uptick in high-value transactions reflects growing confidence in the XRP network, which could positively influence market sentiment.
As other investors take notice and follow suit, this momentum may push XRP’s price higher. Analysts suggest that a decisive break above the $3.50 resistance level could pave the way for a more sustained rally, unlocking higher price targets. If the bulls maintain control and successfully clear this key level, the market could see a wave of increased buying interest, as traders rush to capitalize on the breakout opportunity.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
