As XRP faces a short-term correction, slipping 5.39% in the past 24 hours, its technical outlook remains promising for a potential rebound.
Notably, in an analysis by World of Charts, the token recently confirmed a breakout from a consolidating bullish pennant range. This breakout, coupled with a surge in trading volume, has fueled expectations that XRP could rally toward $4 in the next couple of days, representing a potential 68% gain from its current price.
Technical analysis paints a bullish picture for XRP
The bullish pennant breakout signals renewed strength in XRP’s price action, a pattern often associated with significant rallies. For the rally to sustain, XRP must reclaim its critical support at $2.40, which now serves as a key technical floor.
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However, the token is expected to face interim resistance levels at $3 and $3.50, which could test its upward momentum. If these levels are breached, XRP is likely to accelerate toward the $4 target.
“XRP breakout has confirmed with strong volume expecting continuation in next couple of days towards 4$”- World of Charts
Adding to the growing bullish sentiment, several prominent analysts have expressed optimism about XRP reaching new highs in the near future.
Pseudonymous trading expert The Great Mattsby has noted that XRP could surpass $2.70 within a matter of days or weeks supported by Fibonacci retracement analysis. Mattsby’s outlook further strengthens the case for XRP’s upward momentum.
Macroeconomic headwinds and key ecosystem developments
The broader cryptocurrency market has been under pressure due to macroeconomic uncertainties. Bitcoin (BTC), the world’s largest cryptocurrency, slipped 3.37% in the past 24 hours to $91,636, as stronger-than-expected U.S. jobs data raised concerns that the Federal Reserve may maintain higher interest rates for longer.
This sentiment has weighed heavily on the global cryptocurrency market, with total capitalization dropping to $3.29 trillion, a 5.7% decline in the last 24 hours.
According to CoinGlass data, over $534 million in liquidations were recorded during this period, reflecting heightened volatility.
Despite these challenges, XRP continues to draw optimism, supported by significant developments in its ecosystem.
Over the weekend, XRP surged to $2.58, likely driven by expectations surrounding the Securities and Exchange Commission’s (SEC) appeal deadline on January 15, 2025.
Market participants remain hopeful that under the new SEC leadership, led by pro-crypto advocate Paul Atkins, XRP could finally emerge from the regulatory uncertainty that has overshadowed it since 2020.
Ripple CEO Brad Garlinghouse has referred to 2025 as the start of a ‘Trump bull market,’ attributing the renewed market optimism to the administration’s pro-crypto stance following Donald Trump’s inauguration.
Moreover, XRP’s real-world utility received a boost with Bank of America (NYSE: BAC) reportedly using XRP for 100% of its internal cross-border transactions, according to David Stryzewski, CEO of Sound Planning Group.
XRP price analysis
At press time, XRP was trading at $2.38, registering a one-day drop of over 5%. However, on the year-to-date chart, the token remains up by 11%, showcasing its resilience despite recent market volatility.
That being said, XRP’s potential rally toward $4 is underpinned by a mix of technical and macroeconomic factors.
While the breakout from a bullish pennant signals upward momentum, broader market sentiment, driven by Bitcoin’s performance and global economic developments, will play a crucial role in shaping its trajectory.
Additionally, shifting market dynamics and supply-side pressures add a layer of complexity to XRP’s outlook, making its next moves critical for traders and investors navigating this uncertain period.
Featured image via Shutterstock
