XRP (XRP) witnessed a historically significant year in 2024 after the altcoin registered its highest monthly close ever in December at $2.08. With a return of 16.50% over the past three days, XRP is off to a positive start in 2025 as well. With market expectations largely bullish, traders and technical analysts have outlined potential XRP targets over the coming months.
The altcoin's price exhibited a "god candle" in November 2024, breaking a seven-year downtrend with a remarkable 283% rally. With Ripple’s legal battle with the SEC reaching what many see as a positive conclusion for investors, multiple analysts believe XRP is poised for additional upside this year—the start of what some are dubbing its "second wave."
Mikybull, a noted crypto trader, suggests this next phase of rallies may soon begin. By drawing comparisons between 2017 and 2024 on a two-day chart, XRP has shown signs of consolidation; the relative strength index (RSI) has eased from overbought conditions to around 57. This has been followed by retests of the 20-day and 40-day exponential moving averages (EMas) as support bands before indicating potential for another breakout.
Similarly, crypto investor Javon Marks pointed to another chart pattern showcasing strong similarities between XRP’s 2017 bull run and its current price progression. He confidently stated, "By previous performance, all-time highs (>$3.317) and MUCH HIGHER is just a matter of when, not if." Such bullish predictions tie directly to XRP's current bullish pennant pattern, which has consistently yielded significant gains post-breakout during the previous occurrences.
Notably, this bullish pennant has sparked hopes for substantial price targets. Following this ascending pattern hinting at 100% gains, analysts foresee XRP reaching Fibonacci extension levels at 1.618 and 2.272, potentially driving the price up to $5 within weeks, representing 110% of its value as of late January.
While this target may seem optimistic, some analysts project even loftier ambitions. Market technician Tony Severino highlighted the potential emergence of another bull flag on XRP’s one-day chart. Severino estimated if XRP breaks out from this pattern, it could reach prices around $13—roughly 440% higher than current valuations. While he acknowledged this target is beyond the ideal, he remarked it is quite plausible.
This bullish narrative has been bolstered by several factors influencing XRP’s resurgence. After the US elections, both XRP and its competitor Cardano’s ADA recorded notable gains, signaling confidence among investors. Goo-illuminated conditions accompanying the Trump administration are now seen as potentially favorable for the cryptocurrency sector.
Ripple's CEO, Brad Garlinghouse, previously noted how US-based crypto projects had thrived under Trump’s initial governance due to more friendly policies. With the new Congress perceived as being vastly pro-crypto, the regulatory climate holds promise for Ripple as well as other domestic operations.
An impending regulatory shift offers hope for XRP investors. The anticipation rests primarily on the outcome of its legal battle against the SEC. XRP has seen a remarkable 250% rise throughout 2024, which analysts attribute to expectations of some clarity and possible resolution moving forward.
The clock is ticking as the SEC’s deadline for filing its opening brief at the 2nd Circuit Court of Appeals approaches on January 15. This timeline has ignited speculation among traders about potential price movements vis-à-vis the lawsuit’s conclusion. Over the past weeks, XRP has climbed 12%, recently peaking at $2.40.
This bullish sentiment is often compounded by what market experts refer to as the "January effect," which sees investors increasingly bullish at the start of the year. Coupling this with expectations for favorable outcomes from Ripple’s SEC challenges, many analysts believe XRP is on the verge of enacting significant growth.
While the positive outlook for XRP seems compelling, potential pitfalls still linger. XRP must maintain solid support at the key price level of $2 to sustain its bullish momentum. Analysts have also spotlighted immediate resistance at levels of $2.54, $2.61, and $2.62. A break below the 50-day moving average at $1.90 could signal significant downturns and potentially undermine recent gains.
Investors are reminded of the volatility inherent within the cryptocurrency market. Some predict XRP could even dip to levels as low as $1 before embarking on another significant rally. Such price reversals indicate how rapidly moods can shift influence within the coin's value following regulatory developments or broader market trends.
Despite the uncertainty, the crypto community remains cautiously optimistic about XRP's future and the imminent litigation developments. Many uphold hope for XRP’s price to achieve all-time highs—a feat contingent not solely on previous price performances but also on clarity surrounding its regulatory standing. If XRP is construed positively through this resolution, market analysts believe it could lead to significant price rallies.
On the other hand, if the outcome disappoints investors, it could catalyze severe downturns. With all eyes fixed firmly on the SEC lawsuit, XRP’s price movement holds substantial stakes for traders cautious of potential volatility. All investors are encouraged to exercise due diligence before deeply engaging with cryptocurrency investments.