XRP (XRP) has followed the broader crypto market trend with a sharp decline, but the altcoin is still holding onto a significant portion of its 300% gains, which it accumulated in the latter part of 2024. The altcoin managed to avoid a deeper correction between January 7 and January 9, as it continues to consolidate near a downtrend line, looking for a potential breakout above the key resistance range between $2.50 and $2.60.
XRP 1-week chart. Source: Cointelegraph / TradingView
XRP Price Is In A Key Decision Making Zone
While major coins like Bitcoin (BTC), Ether (ETH), and Solana (SOL) have been trending towards their previous lows over the past 24 hours, XRP has been struggling to maintain a position above $2.30, which has been the point of control (POC) for the altcoin since it crossed $2 on December 1. A position above the POC means that bulls are still in control of the overall price action.
XRP 4-hour chart analysis by Valeria. Source: Cointelegraph / TradingView
Valeria, a crypto and forex trader, said that the XRP price is currently in a key decision-making zone. The trader explained that the altcoin’s bullish rejection or bounce from $2.15 to $2.20 indicates “the intentions of the major players.” The trader added,
If the support area resists, a strong growth is expected with the closest target at $2.91, where sellers' liquidity is concentrated.
Additionally, Valeria noted that traders should keep a close eye on XRP price action as “the asset is poised for a strong move.”
In a similar vein, crypto analyst Dan Crypto said that the altcoin pair “could be great to trade” as XRP has historically held most of its technical levels. The trader highlighted a triangle/flag formation on XRP’s 4-hour chart, noting that these types of patterns have a higher probability of breaking out to the upside during bull markets.
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Public sentiment towards XRP indicates optimism.
In addition to the favorable market structure, the XRP ecosystem has also seen a series of positive events that could attract speculators. Ripple’s CEO recently stated that approval of a spot XRP ETF could come “very soon.” Meanwhile, Ripple CEO Brad Garlinghouse recently shared a photo with President-elect Donald Trump, raising the possibility of XRP rallying after Trump’s inauguration on January 20.
XRP sentiment analysis. Source: Santiment
These factors have improved public sentiment towards XRP, with data from Santiment showing a rise in positive sentiment. It is important to note that the index was much higher during the end of November 2024, but it is currently improving again.
XRP 4-hour chart. Source: Cointelegraph / TradingView
From a technical perspective, XRP has been converging within trend lines over the past few weeks, with the price holding above the 200 EMA daily. With a potential break above the downtrend line, the altcoin is likely to attempt to clear liquidity levels around $2.42 and $2.50, which could fuel a rally towards a new all-time high above $2.90.
However, a confirmed daily break above the resistance levels is $2.50, and $2.60 remains crucial.
Related: Price Analysis 1/8: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, AVAX, SUI, LINK
This article is for general informational purposes and is not intended to be or should be taken as legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and ideas of Cointelegraph.