XRP has enjoyed a highlight moment in the past month, with its price soaring by nearly 270%, reaching a market value of $108 billion, ranking fifth in the cryptocurrency rankings. This rise has not only ignited market enthusiasm, but also sparked discussions about future trends - can XRP reach a price of $2 or even higher?
Key factors driving XRP’s rise:
1. Ripple's years-long legal battle with the SEC has finally come to a ray of hope. SEC Chairman Gary Gensler is set to step down on January 20 next year, which has made the market look forward to the possibility of the legal case ending soon, boosting the buying sentiment for XRP.
2. Ripple recently burned 46.67 million RLUSD stablecoins, leaving only a small amount remaining. This action has been interpreted by the market as a measure to enhance the stability and trust of the Ripple ecosystem, providing support for XRP's rise.
3. Chaikin Money Flow (CMF) has turned from negative to positive, reaching 0.08, indicating a return of market funds and an increase in investor confidence. Although this indicator has not yet reached the bullish peak, this shift has injected momentum into the upward trend.
XRP's current RSI is 74.8, which has entered the overbought range, but historical data shows that XRP may continue to rise even when the RSI reaches above 80. Investors need to be cautious of short-term pullback risks, but the upward space may not be capped.
Resistance above: $1.91 (short-term psychological level), $2 (key milestone).
Support below: $1.21 and $1.05 (safe zone during market corrections).
XRP's trading volume remains high, indicating that buying power is still strong. If funds continue to flow in, the $2 target may just be a matter of time.
With the current strong bullish sentiment support, XRP may attempt to test the $2 level in the short term. If it breaks through this psychological price point, the market may further explore $2.5 or higher. However, potential risks should also be noted:
Excessive gains may trigger short-term profit-taking behavior, leading the price to pull back to the $1.21 support area.
If the outcome of the Ripple lawsuit is not as the market expects, it may have a significant negative impact on the price.
Short-term investment
Positions can be gradually reduced in the $1.75-$1.80 range to lock in profits.
If the price breaks through $2, it is recommended to follow the trend, targeting $2.38-$2.50.
Medium to long-term investment
It's still possible to build positions in batches near the current price (below $1.90), with a long-term target set above $3.
The stop-loss level is recommended to be set at $1.20 to avoid losses from unexpected market downturns.
XRP has demonstrated its potential to return to mainstream visibility through actual performance. If market news continues to improve, it may not only break through $2 but also have the opportunity to create new heights.
What do you think, will XRP become the next dark horse? For more exciting analysis, remember to follow Mr. Qiu!
