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Ripple’s XRP recently made an unexpected 8% surge, reaching $2.6, after weeks of relatively calm price action. This sudden spike has left many market observers wondering if XRP’s bullish momentum will continue or if the price will fall back into its previous range. The coming days are critical for determining whether XRP can maintain its upward trajectory or if it will face another period of stagnation.
$XRP BREAKOUT!
— XRP whale (@realXRPwhale) January 12, 2025
Let’s get a backtest and pump it! #XRP 🚀🌖 pic.twitter.com/7JXi7m3AOU
Analyzing XRP’s Price Action
XRP has been trading within a sideways wedge for several weeks, signaling a period of indecision in the market. The price has fluctuated between $2 and $3, with little to no significant movement. However, yesterday’s unexpected rise to $2.6 has sparked renewed interest, indicating that volatility could be returning. For XRP to maintain its upward momentum, it must break free from this range. A sustained rally will depend on whether buyers can push the price above $3 and keep it there.
Low volatility and trading volume have characterized XRP’s recent price action, suggesting a lack of investor interest. Broader macroeconomic factors, such as political uncertainty, may be contributing to the market’s hesitance. Investors are waiting for a clear direction, and a bullish breakout could reignite interest, while a bearish turn could lead to sharp losses.
Key Support Levels and XRP’s Future
Looking at XRP’s 4-hour chart, the price has found strong support at $2, coinciding with the 0.5 Fibonacci retracement level. This support level has held firm in recent months, allowing buyers to maintain control. After briefly testing this support, XRP made a slight upward move. However, the market has since returned to a low-volatility phase.
Also Read: Is Ripple’s Platinum ABA Membership the Key to XRP’s Future in U.S. Banking?
If buyers can sustain the $2 support level, a potential bullish breakout could be on the horizon. However, if sellers push the price lower, XRP may face a significant drop. The next few days will determine whether XRP’s recent surge signals the beginning of a major rally or if the momentum fades.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
