XRP has been in a prolonged consolidation phase that has prevented the altcoin from reaching the $3.00 mark this year.
As January 2025 approaches, the chances of XRP achieving this milestone remain slim, with market conditions and technical indicators suggesting that any substantial rally will be delayed.
XRP faces difficulties
The NVT (network value to transactions) ratio indicates that XRP’s network value currently exceeds its transaction value. Historically, this imbalance has preceded a correction, as overvaluation of the network often results in losses for investors.
Such market conditions make recovery difficult. Without increased transaction activity to support its network value, XRP risks prolonged stagnation or potential decline, limiting its short-term growth prospects.
The MACD (Moving Average Convergence Divergence) indicator further suggests a bearish outlook, with no signs of a bullish crossover currently in sight. This lack of momentum is unlikely to change as 2025 begins, with a bearish crossover reflecting broader negative market cues.
The technical indicator suggests that downward pressure on XRP continues. The altcoin may struggle to break out of the current consolidation range before a reversal occurs and could fall further if selling pressure intensifies.
XRP Price Prediction: Remains Stable
XRP has been consolidating for the past month, remaining stuck below the $2.73 resistance level while hovering above the $2.00 support level. This pattern mirrors the consolidation period that XRP experienced for more than three months before it finally rebounded in November of this year, raising the possibility of a similar timeline.
If history repeats itself, XRP might not break above $3.00 until the end of February 2025. Any significant sell-off during this long consolidation period could push the altcoin as low as $1.28, exacerbating investor losses.
However, a shift in broader market sentiment could change XRP’s trajectory. A breakout above the $2.73 resistance level could push the price to $3.00, invalidating the bearish outlook and signaling a new bullish phase for the altcoin that could even push XRP to new all-time highs above $3.31.