XRP price just hit $3 for the first time in 6 years before dipping a bit to $2.93. This is a 30% recovery from its lowest price of $2.18 this month. Much of this price increase is because of big investors, called “whales,” who own between 1 million and 10 million XRP tokens. Their big purchase has helped XRP a lot.
Another reason for the rise of XRP has to do with potential approval of exchange-traded funds (ETFs) for XRP in the U.S. A recent JPMorgan report says such ETFs might attract between $4 billion and $8 billion in new investments should they be given the green light.
This news has made many investors happy, causing XRP’s price to rise. The upcoming swearing-in of President-elect Trump on January 20 is also seen as something that could change everything. Many think his administration might help make it easier for XRP ETFs to be approved, which could help XRP grow even more.
Looking at the chart, XRP’s future looks bright. It has recently broken out of a “bull flag” pattern on its daily chart. This pattern happens after a price surge, followed by a period of consolidation.
XRP rose 105% in November and December 2024 and is now trading above the upper trend of this pattern, showing that the price may further rise. Based on technical analysis, XRP could go as high as $4.16, up 50% from its current price, by February 2025.
On the weekly chart, XRP has entered a “bull pennant” pattern, which usually means it will keep going up. If XRP breaks out of this pattern, it could go up to $13, which would be a 370% gain from its current price. XRP’s price is also above important support levels, like the 50-week and 200-week moving averages, which makes the positive outlook even stronger.
However, investors should be careful. The relative strength index of XRP is at 77.5; hence, the cryptocurrency is already overbought. Such conditions might see a short-term drop or stabilization occur. This doesn’t mean its trend will necessarily change, but it’s something to watch out for.
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