A respected market analyst has outlined a timeline for XRP to achieve a $6 valuation, a milestone that would nearly double its all-time high from 2017-2018. This projection comes despite ongoing volatility in the cryptocurrency market, driven by macroeconomic and regulatory challenges.
Broader Market Context
XRP’s recent price activity has unfolded amid bearish sentiment across the financial markets, influenced heavily by U.S. Federal Reserve policy updates. Federal Reserve Chair Jerome Powell recently announced that interest rate reductions in 2025 may be more gradual than anticipated, dampening market enthusiasm.
In addition, discussions around potential legislation prohibiting the Federal Reserve from holding Bitcoin have introduced further uncertainty. This environment has negatively impacted the broader cryptocurrency market, with XRP seeing notable declines.
On December 20, XRP experienced a sharp 9.91% drop, followed by a 3.24% loss the next day, reaching a low of $1.96. However, by December 21, the token had partially recovered, gaining 4.35% to trade at $2.37.
Analysts See a Breakout Opportunity
Despite the recent downturn, some analysts remain optimistic about XRP’s near-term prospects. CryptoBull, a notable market commentator, has identified a symmetrical triangle formation on XRP’s daily chart, signaling the potential for a significant breakout.
According to CryptoBull, the ongoing correction could conclude soon. “This structure will resolve within the next week,” he noted, predicting that XRP’s breakout could cause a rapid surge to $6.
#XRP is finishing a correctional pattern. This will be completed within the next week. After that I believe we will go to $6 within a few days. pic.twitter.com/qrAbmTEGTn
— CryptoBull (@CryptoBull2020) December 19, 2024
The symmetrical triangle emerged after XRP hit a seven-year high of $2.9 on December 3, followed by a significant correction. This pattern, commonly associated with market indecision, indicates a narrowing range as bulls and bears compete for control.
The formation has unfolded in five waves: a steep decline (wave A), a partial recovery (wave B), a lower low (wave C), a potential test of the upper trendline (wave D), and a final pullback (wave E). CryptoBull anticipates that a breakout above the triangle’s resistance could set the stage for XRP to retest $2.9 before advancing to $6.
Key levels identified include $2.4 as immediate resistance and $2.0 as a major support zone. A breakout above $2.4 could confirm the start of a new bullish phase.
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Parallels with the 2017 Rally
In another analysis, CryptoBull likened XRP’s recent price behavior to its notable rally in 2017, when the cryptocurrency entered a multi-month upward trend starting in March.
CryptoBull believes XRP is following a similar trajectory, having already reached a critical level of $1.96. Based on this pattern, he forecasts that XRP could reach $6.28 by the end of December 2024. Additionally, he predicts a meteoric rise to $40 by January 2025 if the fractal behavior continues.
Outlook for XRP
While XRP has faced considerable headwinds from macroeconomic factors and market corrections, technical patterns, and historical parallels suggest the potential for a strong recovery.
As XRP approaches the triangle’s apex, its price movement in the coming days will be critical. A breakout above $2.4 could signal the start of a new bullish cycle, with the potential to reach $6 and beyond.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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