XRP (XRP) has followed the broader cryptocurrency market trend with a sharp sell-off, but the altcoin still retains most of the 300% gains it accumulated at the end of 2024. On the 7th and January 9th, we are eyeing a possible break above the key resistance between $2.50 and $2.60 as it continues to consolidate near the downtrend line.
XRP 1 week chart. Source: Cointelegraph/TradingView
XRP price is positioned in a key decision-making area.
While major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have reached previous lows in the past 24 hours, Fighted to maintain. This is because it surpassed $2 on December 1st. A position above POC means that bulls remain in control of the overall price movement.
Valeriya’s XRP 4-hour chart analysis. Source: Cointelegraph/TradingView
Valeriya, a cryptocurrency and forex trader, said that the XRP price is currently in a key decision-making area. The trader explained that the altcoin’s rejection of the upside, or bounce back to the $2.15 to $2.20 level, indicates “major corporate intent.” The merchant added.
“If the support zone becomes resistance, aggressive growth is expected with the nearest target at $2.91 where seller liquidity will concentrate.”
Valeriya also noted that traders should closely monitor XRP’s price movements “as the asset is poised for a strong move.”
Likewise, cryptocurrency analyst Daan Crypto said the altcoin pair “could be good to trade” as XRP has historically respected most technical levels. Traders have highlighted the formation of a triangle/pennant shape on the 4-hour chart of XRP, suggesting that this type of pattern is more likely to rise in a bull market.
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XRP Crowd Sentiment Hints Optimism
In addition to the favorable market structure, XRP’s ecosystem has witnessed a series of positive events that can attract speculators. Ripple’s boss recently said approval for an XRP spot ETF could come “very soon.” Meanwhile, Ripple CEO Brad Garlinghouse recently shared a photo with President-elect Donald Trump, raising the possibility of an XRP rally following Trump’s inauguration on January 20.
Crowd sentiment analysis of XRP. Source: Santiment
These factors have improved crowd sentiment towards XRP, as Santiment’s data highlights a rise in positive sentiment scores. It is important to note that the index was much higher at the end of November 2024, but is now improving again.
XRP 4-hour chart. Source: Cointelegraph/TradingView
From a technical perspective, XRP has been converging within the trendline over the past few weeks and the price has remained above the 200-day EMA level. With the potential to break above the descending trend line, the altcoin will likely attempt to clear liquidity levels near $2.42 and $2.50, which could spark a rally toward new all-time highs above $2.90.
However, the confirmed daily break above the resistance level is $2.50 and $2.60 is still significant.
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This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.