XRP price preparation above $2.90 for a ‘strong move’ indicates optimism according to sentiment indicators
XRP (XRP) has followed the broader crypto market trend by selling strongly, but the altcoin is still holding a 300% gain, which it will store in the last part of 2024. In the year 7 and January 9, while consolidating towards the downtrend line, eyeing a potential breakout above the key resistance zone between $2.50 and $2.60.
XRP 1-Week Chart. Source: Cointelegraph/TradingView
The price of XRP is placed in a key decision-making zone
As major players such as Bitcoin (BTC), Ether (ETH) and Solana (SOL) moved to previous swing lows in the past 24 hours, XRP struggled to hold a position above $2.30, which is the altcoin's point of control (POC). On December 1, for breaching $2. A position above the POC indicates that bulls dominate the overall price action.
XRP 4-Hour Chart Analysis by Valeria. Source: Cointelegraph/TradingView
Valeria, a crypto and forex trader, said the price of XRP is currently in a critical decision zone. The trader explained that the altcoin's upward rejection, or break from the $2.15 to $2.20 level, indicates “the intent of the major players.” The businessman added:
“If the support zone is resisted, a strong rally is expected with a target near $2.91 where the sellers have strengthened.”
Valeria also mentioned that traders should keep a close eye on XRP's price action as the “asset is poised for a strong move.”
Likewise, Diane Krypto, a crypto analyst, said that XRP “could be good to trade” as the altcoin pair has met most of the technical standards in history. The trader highlighted the formation of a triangle/pennant formation on XRP's 4-hour chart, which types of patterns are most likely to break to the upside during a bull market.
Related: Ripple's RLUSD stablecoin to list ‘soon' on multiple exchanges – Exec
XRP indicates public sentiment is optimistic
In addition to the favorable market structure, the XRP ecosystem has also seen a series of positive events that may attract speculation. Ripple's president recently said approval of the XRP spot ETF could come “soon.” Meanwhile, Ripple CEO Brad Garlinghouse recently shared an image of President-elect Donald Trump that sparked the possibility of an XRP rally after Trump's inauguration on January 20th.
XRP Public Sentiment Analysis. Source: Sentiment
These factors have improved public sentiment for XRP as data from Santiment shows an increase in positive sentiment scores. In the year It should be noted that the index was very high at the end of November 2024, but is currently improving again.
XRP 4-Hour Chart. Source: Cointelegraph/TradingView
From a technical perspective, XRP has rallied within trend lines over the past few weeks, with the price maintaining a position above the 200-day EMA level. With a possible breakout above the descending trendline, the altcoin will try to clear the liquidity around $2.42 and $2.50, which could ignite a rally to a new all-time high above $2.90.
However, the confirmed daily breakout above resistance levels is $2.50, and $2.60 remains critical.
Related: Price Analysis 1/8: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, AVAX, SUI, LINK
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
