XRP (XRP) Price Sits in a Key Decision-Making Zone as the Market Prepares for a Powerful Movement

XRP (XRP) has followed the broader crypto market trend by selling off sharply, but the altcoin still holds the bulk of its 300% gains

XRP price managed to avoid a deeper correction between Jan. 7 and Jan. 9, as it continues to consolidate near its descending trendline, eyeing a potential breakout above the key resistance range between $2.50 and $2.60.

After rallying by more than 300% in the final quarter of 2024, XRP price encountered overhead resistance at $2.34 on Jan. 7. This level also served as support on Dec. 1 and Dec. 23, highlighting its significance in determining the altcoin’s near-term directional bias.

As XRP attempts to break out above $2.34, several key levels are coming into focus on lower time frames. Notably, the altcoin has maintained a bullish higher-low price structure since Dec. 1, rallying from a low of $2.15 on Dec. 21. This level now acts as support on the 4-hour chart.

Moreover, a descending trendline from Dec. 29 also converges near the lower support zone, forming a confluence of technical levels that could influence XRP’s next move.

Crypto and forex trader Valeriya highlighted the significance of XRP’s price action within this zone in a recent analysis. The trader noted that the altcoin’s upward rejection or bounce from the $2.15 to $2.20 level indicates the “intentions of major players.”

Valeriya added:

“Additionally, traders should closely monitor XRP’s price action as the asset is preparing for a powerful movement.”

Similarly, Daan Crypto observed that the altcoin pair “can be great to trade” as XRP has historically respected most of its technical levels. The trader highlighted the formation of a triangle/pennant formation on XRP’s 4-hour chart, suggesting that these types of patterns have a higher probability of breaking upward during bull markets.

Related: Price analysis 1/8: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, AVAX, SUI, LINK

XRP crowd sentiment hints at optimism

In addition to a favorable market structure, XRP’s ecosystem has also witnessed a series of positive events that could lure in speculators. Among the notable developments is Ripple's president recently stating that an XRP spot ETF approval could be coming up “very soon.”

Furthermore, נשיא ריפל recently shared an image with President-elect Donald Trump, which stirred the likelihood of an XRP rally after Trump’s inauguration on Jan. 20.

These factors have improved the crowd sentiment for XRP, as data from Santiment highlighted a rise in the positive sentiment score. It is important to note that the index was much higher during the end of November 2024, but it is currently improving again.

From a technical perspective, XRP has converged within trendlines over the past few weeks, with the price maintaining a position above the 200-day EMA level. With a potential breakout above the descending trendline, the altcoin will likely attempt to clear liquidity levels around $2.42 and $2.50, which may fuel a rally toward a new all-time high above $2.90.

However, a confirmed daily breakout above resistance levels is $2.50, and $2.60 remains critical.