XRP has seemingly lost steam in its push towards the $4 mark, showing stability in the short term. However, the asset’s technical setup hints at a potential 200% rally.
Specifically, one key indicator, the Fibonacci extension tool, paints a bullish picture that XRP could hit the $9 mark as the asset seeks to achieve higher gains following a multi-year consolidation below the $1 mark, according to analysis shared by The Great Mattsby in an X post on January 25.
Notably, Fibonacci extensions predict potential price targets based on prior price movements. In XRP’s case, the 2.618 Fibonacci extension level on the weekly chart aligns with the $9 price mark.
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For XRP to reach the $9 target, it must first overcome several resistance levels. The immediate hurdle is $3.50, a psychological level reinforced by past price action.
Beyond that, $5.89 represents the next critical resistance, a level that aligns with the 1.618 Fibonacci extension. Finally, breaking through $7.20, which coincides with the 2.272 extension level, would pave the way for XRP to target the 2.618 extension at $9.
Meanwhile, as XRP consolidates above the $3 mark, Carl Moon’s analysis in a January 26 X post provided insights on what to expect in the short term for the Ripple-affiliated token.
In this line, if XRP embarks on a bullish rally, it could hit $3.40 in the short term, followed by a medium-term surge toward $4.20. This outlook is based on the fact that XRP’s price action is tightening within a symmetrical triangle on the four-hour chart. Notably, this formation often signals a breakout.
XRP fundamentals
Aside from the technical element, XRP is surrounded by other fundamentals likely to influence its price, with the regulatory aspect among the top. The ongoing Ripple and Securities Exchange Commission (SEC) case remains a focus point, considering that the regulator has appealed a previous ruling in favor of the blockchain firm.
Anticipation in the matter has heightened following a closed meeting on January 23, where the agency likely discussed enforcement actions, including the Ripple lawsuit.
Speculation intensified after Commissioner Mark Uyeda was appointed acting chair. In November, Uyeda urged an end to crypto enforcement unrelated to fraud.
A closed SEC meeting on January 30 will provide another opportunity to address the appeal, with key agenda items outlined in the Sunshine Notice Act. It’s worth noting that with the new Donald Trump administration—considered favorable for the cryptocurrency sector—there is anticipation that the case might finally be thrown out or reach a settlement favorable to Ripple.
Similarly, the potential rollout of an XRP exchange-traded fund (ETF) could spark a price breakout, given the product’s ability to attract institutional investor interest. Several fund managers have already expressed interest in offering the product and are awaiting SEC approval.
Meanwhile, banking giant JPMorgan (NYSE: JPM) is forecasting that if an altcoin ETF is approved—specifically focusing on Solana (SOL) and XRP—the move has the potential to attract $14 billion in investments within its first year.
XRP price analysis
By press time, XRP was trading at $3.12, gaining less than 0.1% on the daily and weekly charts.
Currently, XRP is showing consolidation, but the asset’s long- and short-term outlook remains bullish. XRP’s 50-day simple moving average (SMA) is $2.45, indicating a positive trend, while the 200-day SMA is $1.12.
With a Relative Strength Index (RSI) of 67.19, XRP might be overbought but still has the potential for further gains. XRP looks positive, but some caution is needed due to potential short-term corrections.
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