XRP Price Prediction: Why Ripple (XRP) Could Rally 21% This Month

Ripple price rose for three consecutive days as Bitcoin and other altcoins rebounded on the first trading day of the year, hinting at a potential January Effect.

output: Ripple (XRP) price rose for three consecutive days on Thursday as Bitcoin and other altcoins rebounded on the first trading day of the year, hinting at a potential January Effect.

After hitting $2.40 on Thursday, XRP clocked its highest level since Dec. 18 and a 26% gain from its lowest level last week.

Here's a look at a few key factors driving the XRP price rally and why the momentum may continue in the next few weeks.

Donald Trump will be inaugurated this month, while Gary Gensler is expected to resign before that.

Trump has named Paul Atkins to be the next head of the Securities and Exchange Commission. A veteran regulator, Atkins has shown support for the crypto industry, signaling a potential shift from the Gensler era.

While these developments are already priced in, XRP and other cryptocurrencies could see further gains ahead of these events.

Also, the odds of the SEC approving a XRP ETF are increasing. According to Polymarket, these odds now stand at 70%.

If approved, a Ripple ETF would likely drive more purchases, much like we've seen with the Bitcoin (BTC) and Ethereum (ETH) ETFs, which saw $35 billion and $2.6 billion in assets, respectively.

There's also growth in the XRP ecosystem, with Ripple USD (RLUSD) being listed on several exchanges.

Moreover, the XRP Ledger is expected to gain traction this year, which could solidify Ripple's role in industries like Decentralized Finance and Real World Asset tokenization.

Finally, the XRP price is also benefiting from the January Effect, which sees investors return from holiday and buy assets.

Strong XRP technicals

Our XRP price analysis last week hinted at this potential, suggesting that the coin's recent pullback was part of a mean reversion process, where an asset returns to its historical averages after a strong rally.

In XRP's case, this involved a drop toward its 50-day moving average.

Also, XRP has formed a bullish pennant chart pattern, which begins with a long vertical line and is followed by a period of consolidation. This pattern usually leads to a strong breakout, which appears to be unfolding now.

As a result, we expect the XRP price to continue rising, with the next target being $2.90, which is about 21% from the current level.

If the momentum continues, XRP could reach resistance at $3 and potentially $5. However, a drop below the 50-day moving average at $1.90 would invalidate this bullish outlook.input: Good morning. Here's a quick XRP price analysis for today:

After rising for three consecutive days, XRP price encountered resistance at $2.40 on Thursday. This level marks the coin's highest since Dec. 18, and a 26% increase from its lowest level last week.

Several factors contributed to XRP's recent price surge. These include the upcoming inauguration of Donald Trump, the departure of Gary Gensler from the SEC, and the anticipation of Paul Atkins' appointment as the new SEC head.

Moreover, the odds of the SEC approving a XRP ETF are also rising. According to Polymarket, these odds now stand at 70%.

If approved, a Ripple ETF would likely drive more purchases, much like we've seen with the Bitcoin (BTC) and Ethereum (ETH) ETFs, which saw $35 billion and $2.6 billion in assets, respectively.

There's also growth in the XRP ecosystem, with Ripple USD (RLUSD) being listed on several exchanges.

Moreover, the XRP Ledger is expected to gain traction this year, which could solidify Ripple's role in industries like Decentralized Finance and Real World Asset tokenization.

Finally, the XRP price is also benefiting from the January Effect, which sees investors return from holiday and buy assets.

Our XRP price analysis last week hinted at this potential, suggesting that the coin's recent pullback was part of a mean reversion process, where an asset returns to its historical averages after a strong rally.

In XRP's case, this involved a drop toward its 50-day moving average.

Also, XRP has formed a bullish pennant chart pattern, which begins with a long vertical line and is followed by a period of consolidation. This pattern usually leads to a strong breakout, which appears to be unfolding now.

As a result, we expect the XRP price to continue rising, with the next target being $2.90, which is about 21% from the current level.

If the momentum continues, XRP could reach resistance at $3 and potentially $5. However, a drop below the 50-day moving average at $1.90 would invalidate this bullish outlook.output: After rising for three consecutive days, XRP price encountered resistance at $2.40 on Thursday. This level