XRP's price is currently in a historical sell-off zone, which has previously seen drops of 85-95%, but traders are focused on new historical highs and higher levels.
In less than a month, the stock market has erased three and a half years of losses, rising over 400% since Donald Trump was re-elected as President of the United States.
As of December 2, the trading price of XRP is $2.50, the highest level since February 2018.
The XRP/USD daily chart shows its Relative Strength Index (RSI) above 70, indicating overbought conditions and potential consolidation or correction.
However, given the parabolic rise, traders largely ignored these warnings, opting instead for momentum.
XRP's price is expected to reach new highs.
Historical chart patterns show that XRP's parabolic trend in 2017 bears a striking resemblance to its current price trend.
In 2017, XRP/USD broke out of a symmetrical triangle pattern that had formed for years, with its price rising from below $0.01 to a historical high near $3.55. In 2024, after consolidating for more than three years in a similar triangular structure, XRP seems to have achieved a similar breakout.
The current breakout has pushed XRP's price above key Fibonacci levels, including 0.236 ($0.96), 0.382 ($1.46), and 0.618 ($2.25). This development is consistent with the triangle breakout in 2017, which propelled XRP's price to the 1.618 Fibonacci level of $0.06.
Therefore, a closing price above the current 0.786 Fibonacci retracement level of $2.82 would strengthen XRP's bullish outlook and increase the likelihood of retesting the previous historical high of $3.55, which aligns with the 1.0 Fibonacci level.
Furthermore, XRP's price discovery could reach the 1.618 Fibonacci extension level of $5.64 in the first half of 2025.
Analysts: XRP could reach $6.60 by 2025.
Independent cryptocurrency trader Jacob Canfield stated that XRP could rise another 100% from previous historical highs.
He applied Fibonacci extensions and compared its performance with Bitcoin. During Bitcoin's rise to $95,437 in 2017, it was observed that BTC's current price is approximately five times higher than XRP's price when it reached its historical high of $3.55 in early 2018.
Canfield stated, "If we use the Canfield Fibonacci extension to understand where this move might take us, it would be at the 11.09 fib extension," and added:
"This would bring the price to around $6.60, exactly double the previous high. I think this could be the ideal FOMO target and would stop the consideration of double-digit or higher prices, which is very logical."
XRP is in a notorious sell-off zone.
It is important to note that since XRP/USD is in a key sell-off zone, the possibility of XRP reaching a local top near its current level cannot be overlooked.
Historically, this 'topping area' has triggered the beginning of long bear market cycles, including a 95% crash from 2017 to 2020 and another 85% drop during the adjustment period from March 2021 to May 2022.
If history repeats itself, XRP could enter a bear market cycle in 2025, potentially targeting its current ascending trend line, which aligns with the resistance range of $0.70 to $1.00 during July 2024 to October 2024.