XRP started rising on Wednesday, January 14, after a relatively negative week, and one analyst says the asset is now at a crossroads, with one turn potentially leading to a new rally.
Namely, according to the crypto market expert known as CrediBULL, XRP has completed a so-called “triple-tap” pattern that pushed prices into the upper end of its recent trading range. The move leaves XRP facing two potential paths in the near term.
The first would see the latest uptick acting as a short-term relief bounce absorbing liquidity near range highs, followed by a resumption of the local downtrend and a pullback below the $1.77 level.
“There are two possibilities moving forward. 1. This was a relief bounce to take liquidity at range highs and now we expect continuation of the local downtrend (within the higher TF uptrend) aka a move back below $1.77,” CrediBULL wrote.
The alternative scenario, however, suggests the formation has established a base of structural demand. In other words, pullbacks are now more likely to be bought, while the $1.77 area acts as a defended support zone and prices continue to expand higher.
“2. The triple tap formation has established a “base” of structural demand from which dips will be bought for continued expansion to the upside aka our lows at $1.77 will be defended for now,” they added.
XRP is more likely to climb
Looking at the broader market conditions and Bitcoin’s (BTC) current positioning, the analyst said the second outcome appears more probable.
“Based on context with where Bitcoin and the broader market is at this time, I am betting on option #2 playing out, which means I will be looking for longs into GREEN while targeting some of the untapped highs above us.”
As a result, they are positioning for long entries on dips, with upside targets set at ‘untapped highs’ above the current price range. At the time of writing, XRP was trading at $2.15, up 4% on the daily chart as improving technical signals and institutional inflows boosted investor confidence.
Most notably, the broader crypto market jumped roughly 4.5% after the U.S. Consumer Price Index data showed core inflation slowing to 2.6% year over year. XRP benefited from the immediate shift in sentiment, with 24-hour trading volume surging 76% to $4.65 billion at press time, signaling broad market participation. At the same time, spot U.S. XRP ETFs have clocked more than $1.5 billion in assets under management.
Technical indicators also support CrediBULL’s perspective, as XRP has reclaimed the $2.09 Fibonacci 50% retracement level and is holding above its seven-day exponential moving average (EMA) near $2.11. Momentum indicators have likewise turned constructive, with the MACD histogram moving into positive territory.
Featured image via Shutterstock
