Amid current market volatility, an analyst has projected XRP’s potential to reach $6, close to doubling its previous all-time high.
Market Context
XRP has recently experienced significant price fluctuations amidst bearish sentiment across financial markets, influenced by U.S. Federal Reserve policy updates. Federal Reserve Chair Jerome Powell announced potential 2025 rate cuts may be more gradual, damping market enthusiasm. Discussions around legislation prohibiting the Federal Reserve from holding Bitcoin added uncertainty, negatively impacting the cryptocurrency market. On December 20, XRP's price sharply dropped by 9.91%, followed by a 3.24% decline the next day, reaching a low of $1.96. However, by December 21, the token partially recovered with a 4.35% gain, trading at $2.37.
Breakout Opportunity
Despite the recent downturn, some analysts remain optimistic about XRP’s near-term prospects. CryptoBull, a notable market commentator, identified a symmetrical triangle formation on XRP’s daily chart, signaling a potential breakout. CryptoBull suggests the ongoing correction could soon conclude, potentially driving a rapid surge to $6 upon breakout. Key levels identified include $2.4 as immediate resistance and $2.0 as a major support zone.
Parallels with the 2017 Rally
In another analysis, CryptoBull compared XRP’s recent price behavior to its significant rally in 2017 when the cryptocurrency entered a multi-month upward trend starting in March. CryptoBull predicts XRP could reach $6.28 by December 2024 and potentially rise to $40 by January 2025 if the fractal pattern continues.
Despite macroeconomic and market correction challenges, technical patterns and historical parallels suggest strong recovery potential for XRP. As XRP approaches the triangle’s apex, its price movement in the coming days will be critical, with a breakout above $2.4 potentially signaling a new bullish cycle.
