XRP (XRP) has experienced a sharp sell-off, following the broader trend in the crypto market. However, the altcoin still retains most of its 300% gains, which it achieved in the latter part of 2024. Despite this, XRP managed to avoid a significant correction between January 7th and January 9th, as it continues to consolidate near its descending trendline, with hopes of breaking out above the key resistance range between $2.50 and $2.60.
The price of XRP currently sits in a crucial decision-making zone. While major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Solana (SOL) have fallen to previous swing lows in the past 24 hours, XRP has fought to maintain a position above $2.30, which has been the point of control (POC) for the altcoin since it surpassed $2 on December 1st. Remaining above the POC suggests that bulls still have control over the overall price action.
Crypto and forex trader Valeriya stated that the XRP price is currently in a crucial decision-making zone. The trader explained that the altcoin’s rejection or bounce from the $2.15 to $2.20 level indicates the intentions of major players. The trader added, “If the support zone holds, aggressive growth can be expected with a target of $2.91, where sellers’ liquidity is concentrated.” Valeriya also mentioned that traders should closely monitor XRP’s price action as the asset is preparing for a significant movement. Similarly, crypto analyst Daan Crypto stated that the XRP pair can be a great 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 patterns have a higher probability of breaking upward during bull markets.
The crowd sentiment for XRP also indicates optimism, in addition to the favorable market structure. Ripple’s president recently mentioned the possibility of an XRP spot ETF approval coming soon. Moreover, Ripple CEO Brad Garlinghouse shared an image with President-elect Donald Trump, which increased the likelihood of an XRP rally after Trump’s inauguration on January 20th.
These factors have improved the crowd sentiment towards XRP, as indicated by the rise in the positive sentiment score according to data from Santiment. It’s worth noting that the index was higher at the end of November 2024, but it is currently improving again.
From a technical standpoint, XRP has been consolidating within trendlines over the past few weeks, with the price remaining above the 200-day EMA level. If there is a breakout above the descending trendline, the altcoin will likely attempt to clear liquidity levels around $2.42 and $2.50, which could fuel a rally towards a new all-time high above $2.90. However, a confirmed daily breakout above the critical resistance levels of $2.50 and $2.60 is essential.
Please note that this article is for general information purposes only and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.