At the time of writing, Ripple (XRP) is trading at $2.15, recording daily losses of 0.58%, weekly losses of 1.04%, but noting a monthly increase of 48.56%. Despite this mixed performance, several factors could significantly influence the price of XRP in the coming months.
The US SEC has until January 15, 2025 to appeal the ruling in favor of Ripple in the landmark court case over XRP. As time goes by, speculation is mounting that the appeal might not go through, cementing Ripple’s victory.
Additionally, Donald Trump's return to the presidency is expected to have a positive impact on the crypto ecosystem. The possible appointment of cryptocurrency advocate Paul Atkins as SEC chairman would reduce incentives for an aggressive stance against Ripple.
Excitement about a US XRP ETF continues to grow. Firms such as Bitwise, Canary Capital, WisdomTree, and 21Shares have already applied for approval of an exchange-traded fund that could significantly boost adoption of the token. However, to date, no official authorization has been granted by the SEC.
Ripple launched its stablecoin RLUSD on December 17, quickly rising to #35 in terms of market cap. However, the impact of this launch on the overall XRP ecosystem has been limited so far.
Additionally, Ripple is preparing for a massive unlocking of 1 billion XRP tokens scheduled for January 1, 2025, equivalent to over $2 billion at the current price. For the moment, the market seems to have discounted this news, as the price of XRP maintains a correlation with the general market trend.
Technical Analysis: Key Levels for XRP
XRP price has been trading sideways in recent days, trading below the EMA 20, 50, 100 and 200, reflecting an advantage for the bears.
On the way up, the token needs to cross the $2.38 level to break out of the sideways line. Further up, XRP would encounter strong resistance at $2.73, overcoming which could take it to higher levels such as the ceiling at $2.91.
Breaking the last resistance would take the price towards the $3 level. However, if XRP fails to do so, it will be worth looking at the following support levels. Firstly, the $2.19 line, the loss of which could take the price to levels as low as $1.96. If this support is lost, the price could drop to $1.86.
For now, the RSI at 43 points denotes the current sideways movement in the price. It is unclear whether the bulls or the bears are in control.
Other data to take into account for XRP
According to data from Coinglass, open interest in XRP futures fell from 4.23 billion to 1.95 billion between Dec. 3 and Dec. 26, a 54% decrease. This significant drop in liquidity could increase the token’s volatility, especially if bearish pressure persists.
Many analysts and members of the crypto community are optimistic about the return of Donald Trump and the possible start of an “altcoin season” in the first quarter of 2025. Factors such as a change in regulatory policy and the creation of an ETF for XRP could be the driving force to reach new highs.
