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Cryptocurrency News Articles

XRP (XRP) Price Prediction 2025: Can the Token Nearly Triple in Value?

Dec 27, 2024 at 12:07 am

XRP's recent price action reflects a resurgence in bullish sentiment. The token consolidated near the $2.20 support level, inching toward the critical $2.30 resistance.

XRP (XRP) Price Prediction 2025: Can the Token Nearly Triple in Value?

XRP’s recent price action signaled a bullish technical setup, the ‘bull flag pattern,’ which could add to the bullish cues favoring the token. A bull flag pattern is a common continuation formation in technical analysis, suggesting the potential for a strong uptrend to resume.

The pattern forms after a steep, near-vertical rally driven by aggressive buying pressure, followed by a consolidation phase, which forms the flag. During this phase, prices typically trade within a narrow, downward-sloping, or sideways channel as traders temporarily take profits, but bulls maintain control, preventing significant declines.

The consolidation reflects market participants reloading positions, creating a base for the next leg up. Importantly, the selling pressure during the flag phase is relatively muted, signaling that the uptrend remains intact.

When the breakout occurs above the flag’s upper boundary, it typically continues the prior uptrend. The price target for a bull flag breakout is calculated by adding the length of the flagpole to the breakout level.

Applying this to XRP’s current setup, the flagpole extends from its recent vertical rally, suggesting a potential price target of $4.36—a 178% increase from current levels. Such a target aligns with XRP’s broader bullish narrative, supported by increased adoption, Ripple’s legal clarity, and fundamental tailwinds.

Consolidation Continues For The Ripple Token

XRP’s recent price action signaled a period of consolidation following its strong rally in late November, with the token currently trading at $2.16. The level aligns with the lower boundary of the Value Area identified by the Volume Profile Visible Range (VPVR).

The VPVR indicates significant trading activity between $2.13 and $2.52, making it a key zone for support and resistance. The Point of Control (POC) is around $2.13, suggesting strong buyer interest, making it a crucial support zone for XRP.

Should the token fail to hold above the POC, the next significant support lies at $1.9. Failure of the immediate support level might force the Ripple token price to test the support at around $1.53 before recovery.

On the upside, resistance appears at $2.6, which aligns with the value area’s upper boundary and the 0.618 Fibonacci retracement level. A breakout above this level could pave the way for XRP to retest the $3 psychological level near the 0.786 Fibonacci level.

The relative strength index for XRP remained neutral, with a score of 50.45 on the daily charts.

News source:coinchapter.com

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Other articles published on Dec 27, 2024