The price of Ripple (XRP) surged significantly last week, ending a two-week consolidation. This move brings the token closer to initiating a bullish market rebound.
An analysis of the XRP price using Fibonacci tools indicates a target price of $150, reaching triple digits. Is such a massive rebound achievable?
The fundamental developments of Ripple have enhanced the value of XRP.
Ripple's recent developments have been very significant. One notable development is the launch of RLUSD on December 17. RLUSD is a stablecoin pegged to the U.S. dollar, and its launch is expected to establish Ripple's position in the digital payments space.
Additionally, Ripple CEO Brad Garlinghouse expressed optimism towards the new Congress, calling it the 'most pro-crypto Congress'. Garlinghouse is also optimistic about the company's growth prospects in the U.S. market and emphasized that 75% of Ripple's open positions are currently in the U.S. The executive noted that Ripple signed more agreements in the U.S. in the last six weeks of 2024 than in the previous six months.
On the other hand, Ripple's XRP ledger has also made headlines for its decentralized trading, cross-currency payments, and payment channel features. The smart contract functionality supported by the Hooks amendment is another significant development witnessed recently.
Fibonacci analysis predicts a target price of $150 for XRP.
From early 2014 to April 2017, the price trend of XRP formed a range, extending from $0.0289 to $0.0618. Analyzing this range with Fibonacci tools reveals that the peak price of the cycle formed at $3.317, between the 272.2% and 241.4% Fibonacci extension levels.
In the second half of 2024, a tightening range has emerged, leading to a massive parabolic rebound. This newly formed range resembles the range between 2014 and 2017, extending from $0.114 to $2.905. Using Fibonacci tools shows that the 272.2% and 241.4% Fibonacci extension levels form at $178 and $282.
While the likelihood of XRP reaching triple digits is low, let’s take a look at some significant fundamental developments the company has noted for 2024.
XRP price receives support.
XRP price continues to hold above $2.30 and maintains its upward trend, similar to Bitcoin and Ethereum. The price broke through $2.45 and tested $2.50, followed by a downward correction.
The price formed a low at $2.32 and is currently rising. The price has broken the $2.40 level. The price has surpassed the 23.6% Fibonacci retracement level from the recent drop from $2.507 to $2.32. On the hourly chart of the XRP/USD pair, the price has broken the resistance level of $2.380 that connects the bearish trendline.
The current price is below $2.45 and the 100-hour simple moving average. On the upside, the price may face resistance around $2.45 or near the 61.8% Fibonacci retracement level from a recent drop from $2.507 to $2.32.
The first major resistance level is around $2.50. The next resistance level is $2.55. If the price breaks significantly above the $2.55 resistance level, it may drop towards the $2.680 resistance level.
Further upward movement may push the price towards the resistance level of $2.720 in the short term, or even $2.750. The next major hurdle for bulls could be $2.880.