The price prediction for XRP is crucial for traders, with price action serving as the main indicator to chart the token's future trajectory. The fourth largest digital asset by market capitalization has dropped nearly 11% in the past 24 hours but remains above $2 after recently reaching $2.14.
Analysts rely on tools like linear regression models to predict future price fluctuations, as price action often determines market sentiment, driving narratives in the cryptocurrency space. While XRP hit a multi-year high of $2.86, it still trades 47.54% lower than its all-time high of $3.84, with new forecasts indicating a strong price rally ahead.
And so, in this case, the analyst 'EGRAG CRYPTO,' in a post on X (formerly Twitter), used linear regression to analyze XRP's price movements. This technical tool helps traders determine when to enter and exit by identifying overbought and oversold levels through upper and lower bands.
Key levels to watch
According to the analyst, XRP could reach $6.4 by March 2025 or sooner, aligning with the upper bound of the regression channel. A breakout above this channel could push XRP to $8.5, signaling a new record high after seven years.
The price level of $4.4 is considered significant, as the analyst noted, serving as a stepping stone to achieve higher targets. He predicts that the peak of the current cycle could range from $13 to $27.
Bullish catalysts driving XRP
Several factors could drive XRP towards these ambitious targets. Ripple is expected to benefit from pro-crypto policies under the upcoming U.S. administration, with the Securities and Exchange Commission (SEC) likely to dismiss the long-standing lawsuit against this fintech company.
Additionally, the approval of spot XRP exchange-traded funds (ETFs) in 2025 could significantly boost market sentiment, potentially driving the price up to $10. The increasing adoption of the XRP Ledger and the launch of Ripple's RLUSD stablecoin could further support XRP's growth and efforts to reclaim a top three position in the cryptocurrency market.
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