XRP Enters 2025 With Bullish Pennant, Targeting $5 and Possibly $13

XRP has entered 2025 on a high note, building on the remarkable gains of 2024. The altcoin closed the previous year with its highest monthly close ever

XRP (CRYPTO: XRP) has kicked off 2025 on a high note, extending the gains from an impressive rally in 2024. Here's a look at XRP's performance and what some analysts are saying about its potential in the year ahead.

Strong Start to 2025: XRP up 16.50%

After closing December at $2.08, its highest monthly close ever, XRP has gained over 16.50% in the first three days of 2025. The altcoin is currently trading at $2.45.

“Second Wave” of XRP Rally on the Horizon?

Crypto trader Mikybull is suggesting that XRP is gearing up for a “second wave” of its rally.

He noted a pattern that could be signaling a second wave of XRP’s rally. Specifically, the altcoin has been consolidating for 30 days, a move that's cooled the relative strength index to 57.

This price action, according to Mikbull, is reminiscent of 2017. Following the 30-day consolidation, the trader noted that XRP tends to break out after retesting the 20-day and 40-day exponential moving averages as support.

Bullish Pennant Pattern: XRP eyeing $5 Target

A short-term bullish pennant pattern has emerged in XRP's charts since November 2024.

This pattern is usually seen as a continuation of upward momentum. In XRP’s case, and based on its historical performance with this pattern, a breakout could see the cryptocurrency heading towards its Fibonacci extension levels at 1.618 and 2.272.

If this pattern plays out, XRP could reach $5, marking a 110% increase from its current price. Some analysts are aiming even higher for XRP.

Market technician Tony Severino identified a potential bull flag on the 1-day chart that could be targeting XRP for a top price of $13.

This would be a staggering 440% increase from current levels. Severino stated that while $13 might be an ambitious goal, it's not entirely out of reach given the current market dynamics and momentum.

Echoes of 2017: XRP's Path to All-Time Highs

Investor Javon Marks also sees parallels between XRP's current price action and its 2017 bull run.

Marks highlighted key strengths in XRP's daily chart that mirror its performance leading up to its all-time high of $3.32. According to Marks, XRP surpassing $3.32 and achieving much higher levels is a matter of “when, not if.”

What's Driving XRP's Momentum?

Several factors are contributing to XRP's strong start to 2025. Ripple, the company behind XRP, has seen growing adoption for its technology in cross-border payments, especially in Japan.

This adoption and the increasing use of XRP for liquidity and settlement have boosted its demand. Furthermore, Ripple's legal victory against the SEC has removed a significant overhang.

This legal resolution has opened the door for increased institutional interest and broader market participation in XRP, ultimately impacting its price and liquidity.