Ripple’s XRP has been on a solid upward trajectory, gaining more than seven percent recently and reaching $2.42. This marks a significant recovery after breaking through key resistance levels that had been in place since 2021. XRP’s ability to consolidate above the $1.96 mark, a major resistance level from 2021, is a promising sign for investors and traders alike. Let’s take a closer look at the key factors driving XRP’s price action and what we can expect for January 3.
XRP’s price has shown strength and stability by staying above the $1.96 level, which was a crucial resistance point for much of 2021. This level was tested multiple times throughout April and May 2021, but it wasn’t until early December 2024 that XRP broke through this barrier. Since then, the cryptocurrency has remained above it, signaling that the market may have shifted from the volatility seen in previous years. For XRP holders, this development is encouraging, as it indicates a potential period of price stability and a move away from the frequent up-and-down swings that have characterized the market in the past.
Looking ahead, XRP could be poised for another surge in price. Analysts are keeping an eye on a potential fifth wave in an Elliott Wave pattern, which suggests that the current bullish trend could continue. While there is no certainty that this will happen, the expectation is for XRP to reach at least one more high before this cycle concludes. If the pattern holds, XRP could break above its current resistance levels and achieve new highs.
On the smaller timeframes, XRP appears to be forming a triangle pattern. This pattern, often referred to as an ABCDE structure, typically involves higher lows and lower highs. If this pattern develops as expected, XRP could see another surge before completing the formation.
To maintain its bullish momentum, XRP needs to hold above its recent low from December 20, which is around the $0.96 mark. If the price breaks below this support level, it could signal a bearish shift in the market. However, even if this happens, the overall bullish trend remains intact as long as XRP stays above the larger support zones.
On the micro scale, XRP could continue its upward push and test new resistance levels. The immediate resistance range is between $2.42 and $2.45, which is where XRP is currently trading. If it breaks through these levels, the next targets to watch are $2.54, $2.61, and $2.62. These levels represent the upper bounds of XRP’s potential in the short term.
However, if XRP falls below the $2.22 mark, it could indicate a reversal in the current trend, pushing the price toward lower levels. Traders and investors should be vigilant about these support and resistance zones, as they will likely determine the direction of XRP’s price in the near future.
As we move into January 3, XRP’s price remains above key support levels, and the potential for another bullish push is strong. The current triangle pattern and the possible continuation of the Elliott Wave cycle suggest that XRP could reach new highs in the coming days. However, as with any market, there are risks, and a break below critical support levels like $2.22 could signal a bearish trend.
Investors should closely monitor XRP’s price action and watch for any signs of a breakout or breakdown. With strong resistance levels ahead, the coming days could be pivotal for determining whether XRP will continue its upward trajectory or face a pullback.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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