#xrp has formed a "descending triangle" pattern since its peak near $2.9 in early December. According to technical analysis, a bullish breakout from this pattern could lead to a 40% or more price increase, resuming the upward trend from early November when XRP was near 50 cents.
The expectation of a crypto-friendly policy under Trump, following his election, has led to a significant price surge in XRP, increasing over 300% since November.
Social sentiment has also been positive, with higher optimism for XRP compared to bitcoin and ether, according to Santiment. Shifting regulatory tides in the U.S. and favorable price action could set up XRP for a 40% move higher in the near term.
Since hitting highs near $2.9 in early December, payments-focused cryptocurrency XRP has lost steam to carve out what is known as a "descending triangle" pattern in technical analysis. It is identified by a lower horizontal support line, representing consistent demand near a specific price level, and the declining upper trendline, representing shallower price bounces.
According to the CMT Association's theory and analysis of technical analysis, descending triangles often end with a downside break. However, bullish breakouts are more reliable and profitable, producing an average gain of 47% to 16%. “In other words, XRP could surge 40% or more if prices top the declining upper trendline, signaling a resumption of the preceding bull run from early November lows near 50 cents,” CoinDesk markets analyst Omkar Godbole states. In an interview on Tuesday, Ripple President Monica Long signaled an XRP exchange-traded fund (ETF) could “soon” become a reality amid the perception of a shift towards more favorable crypto regulations under the incoming Trump administration.