Ripple (XRP): possible 40% increase in price

Ripple (XRP) is in the spotlight with a significant price growth outlook in the short term. 

Thanks to a “descending triangle” technical pattern and the improvement in sentiment related to the election of Donald Trump, XRP could rise by over 40%, according to analysts’ forecasts.

Price and market statistics of XRP (Ripple) price

The price of XRP is currently 2.32 USD, with a market capitalization of 133.5 billion USD, ranking fourth in popularity among cryptocurrencies. In the last 7 days, the token has recorded a daily trading volume of 7.7 billion USD, highlighting strong trading activity.

With 57.4 billion XRP currently in circulation, the average holding period for investors stands at 85 days, suggesting a stable and strategic user base. Although XRP remains distant from its all-time high of 3.84 USD, reached during the 2018 market peak, the current price indicates a phase of consolidation and potential recovery. 

The robust liquidity and constant popularity make XRP a significant asset in the cryptocurrency ecosystem, with long-term growth potential driven by regulatory and technical developments.

The technical model suggests a bull breakout

After reaching a high near $2.9 in December, the price of XRP formed a descending triangle. This pattern, characterized by a horizontal support line and a descending upper trendline, represents a price compression that often culminates in a significant breakout.

According to the theory of technical analysis, bullish breakouts from a descending triangle can produce gains ranging from 16% to 47%. 

Market analysts believe that a break above the upper trendline could lead XRP to resume the bull trend that started in November, when the cryptocurrency was close to $0.50.

However, a bear reversal, with prices below $2.00, could negate these positive forecasts, bringing uncertainty back to the market.

Since the election of Donald Trump, the price of XRP has increased by over 300%, surpassing the performance of other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). This bull rally has been fueled by the expectation of a more crypto-friendly regulatory environment under the new administration.

The CEO of Ripple, Brad Garlinghouse, emphasized how the change in leadership at the SEC, including the retirement of the outgoing chairman Gary Gensler, could open new opportunities for the crypto sector. 

The old administration was perceived as hostile towards cryptocurrencies, but the current political climate seems oriented towards policies that promote the development of blockchains and tokens like XRP.

Ripple Labs has already seen a positive impact: in the last six weeks of 2024, the company has signed more agreements in the United States compared to the previous six months, attributing this momentum to an improvement in local regulatory conditions.

Positive sentiment and increasing social interest

The social metrics show a clear optimism towards XRP. According to the analysis service Santiment, social media posts and market comments highlight a growing enthusiasm for the token, surpassing that recorded for Bitcoin or Ethereum. This positive sentiment can act as a catalyst for further bull movements, attracting new investors and traders.

Furthermore, the recent statements by Monica Long, on the imminent possibility of an ETF XRP have further strengthened the bull sentiment. If approved, an ETF could increase the accessibility and demand for XRP, consolidating its position as one of the main cryptocurrencies on the market.

With a combination of favorable technical signals, positive sentiment, and more favorable political prospects, XRP could indeed register a 40% or more bull. However, investors must remain attentive to any fluctuations in the technical and macroeconomic factors that could influence the price of the token.

The “Trump effect”, regulatory changes, and positive price action provide an overall promising outlook for XRP. However, as always in the cryptocurrency sector, volatility remains a key factor to consider.

Conclusion

XRP could be on the verge of a new significant rise, thanks to a mix of technical and fundamental factors. 

With the election of Trump, the favorable sentiment and a potential breakout of the descending triangle pattern, Ripple’s token seems well-positioned to capitalize on these conditions. If analysts’ forecasts prove accurate, 2025 could see XRP further consolidating its position as one of the best-performing crypto assets.