Annual candle: a key price level to watch

The 12-month candle helps people understand the long-term trend $XRP . If XRP closes above $1.99, it will become an important milestone. This level represents the close of the body of the annual candle for 2017.

Closing above this price would be historic and would signal that XRP is in a new phase. This move has significant implications, especially considering the potential for increased demand and higher price elasticity.

Price elasticity and demand absorption

Demand dynamics influence the price behavior of XRP. When the price rises, demand often remains inelastic, meaning buyers continue to purchase despite higher costs. This is fueled by FOMO (fear of missing out) and investor expectations of further price increases.

But as the price rises, some buyers may hesitate, and demand may become more elastic. Growing utility, increased institutional participation, and ETFs may help sustain demand even at higher price levels.

Biannual and quarterly analysis: strengthening dynamics

6-month (biannual) and 3-month (quarterly) candles provide valuable insights into XRP's dynamics. The biannual chart shows a more stable trend compared to the volatile cycle of 2017.

The growth of XRP seems more stable, suggesting lower risk and sustainable price growth. The exponential moving average (EMA) also reflects a strong trend. A 30-degree angle on the EMA indicates controlled, consistent growth, making sudden reversals less likely.

Additionally, the quarterly RSI shows bullish signs. XRP has already surpassed the 70 mark, which often indicates strong upward momentum. The RSI could rise to 87 and 96. The upward movement of XRP may continue and trigger significant price jumps in the coming months.

Two-month chart: optimistic outlook

XRP is above equilibrium on the 2-month chart; a position it last occupied before a powerful 13-fold surge. This could lead to a new rally for XRP, with price targets of $4 becoming increasingly achievable.

As of the time of publication, XRP is trading at $2.16. The market is becoming more competitive, so investors should keep an eye on these levels. However, if it gains the right momentum, XRP could reach $5 by early January 2025.#2024withBinance $XLM $LINK