XRP (XRP) has surged 134% since the U.S. elections on November 6, bringing year-to-date profits into positive territory with an increase exceeding 80%. XRP price has also surpassed $1 for the first time since October 2021.
XRP/USD weekly price chart. Source: TradingView
Currently, technical conditions indicate that XRP is an overbought asset, which often leads to a noticeable accumulation or correction phase.
While this is very likely, the longer-term charts of this cryptocurrency imply additional profits in 2025.
XRP price drops after a 3-year high
On November 16, the daily relative strength index (RSI) of XRP surpassed 93, a previously unseen overbought level since March 2017. This spike was accompanied by a one-day price increase of up to 42%, pushing the XRP/USD pair to a high of around $1.25.
The XRP price has corrected down about 9.75% since then, and is now stabilizing above the critical $1 level, transitioning from a resistance level to a support level.
See also: Decoding Bitcoin's price as network difficulty hits record levels
The accumulation trend indicates that traders are pausing to prepare for the next move in the market.
XRP/USD daily price chart. Source: TradingView
This leaves the XRP market with a mixed tendency, with the RSI in overbought territory supporting the likelihood of further correction rather than bullish movement.
If a correction occurs, XRP price could drop to the 1.0 Fibonacci retracement support level around $0.936, down about 18% from the current price.
Conversely, XRP's continued momentum could see it retest the local high of around $1.25 in the coming days, but breaking it in the short term could be a challenge for bullish investors based on the current technical structure.
The weekly XRP/USD chart presents a 50% bullish scenario
On the weekly chart, XRP appears to have broken out of a massive symmetrical triangle in November, ending a seven-year accumulation trend.
Interestingly, the breakout from this triangle is similar to March 2017, which led to a price increase of 46,440%.
XRP/USD weekly price chart. Source: TradingView
As of November 18, XRP is accumulating between the 0.236 and 0.382 Fibonacci retracement levels, ranging from $0.87 to $1.35.
The XRP/USD pair must surpass $1.35 to confirm a long-term bullish cycle. This could happen after Donald Trump fires Gary Gensler from the position of Chairman of the Securities and Exchange Commission (SEC); and further if the agency approves XRP exchange-traded funds (ETFs) in the U.S.
The main price target for this optimistic scenario in 2025 seems to be around $1.75, consistent with the 0.5 Fib line, representing an increase of about 50% from the current price.
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