As Bitcoin surpasses the $100,000 milestone in early 2025, XRP has also been making headlines, gaining 20% in the past week to reach $2.44. Analysts suggest that XRP’s recent price action indicates the formation of a bullish flag pattern, potentially signaling a significant upward breakout.
XRP’s Price Action and Technical Indicators
On January 7, XRP was trading at $2.44 during European market hours, with a market capitalization of $244 billion and a daily trading volume of $4.3 billion. Prominent analyst Peter Brandt has identified a flag formation in XRP’s price chart, predicting that this structure could resolve within six weeks. If the breakout occurs, XRP’s market cap could soar to $500 billion.
Similarly, Captain Faibik, a well-known crypto analyst, believes that breaking out of the flag formation could propel XRP’s price by more than 50%, potentially reaching a new all-time high (ATH). Weekly charts also highlight that XRP has emerged from a multi-year consolidation phase, suggesting that the current rally is still in its early stages.
Key Drivers Behind XRP’s Rally
- XRPL Developments: The Ripple ecosystem continues to expand with innovative projects. For example, the recently launched RLUSD stablecoin has already achieved a $72 million market cap and a $24 million daily trading volume.
- Political Influences: Ripple CEO Brad Garlinghouse attributes part of the crypto market rally to the “Donald Trump effect,” which he believes will persist throughout the year.
- Global Adoption: XRP’s growing acceptance in international financial systems is providing robust support for its price momentum.
Critical Levels to Watch
From a technical perspective, the $2.50 resistance is a crucial threshold for XRP in the short term. Surpassing this level could open the door for the coin to test new highs. However, investors are advised to exercise caution amid market volatility and closely monitor support and resistance levels.
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