XRP Price Analysis: Flag Breakout and Fibonacci Levels Target at $3.82

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Although Bitcoin has experienced a significant decline, dropping to $93,500 and triggering nearly $300 million in liquidations, Ripple (XRP) remains relatively resilient with its current price at $2.43. Despite a 3.6% daily volatility, it boasts a market cap of $139.84 billion and a 24-hour trading volume of $5.81 billion, indicating a stronger position compared to Bitcoin.

XRP Price Triggers Buy Signal

Despite experiencing a 1.13% decline during regular trading hours and then a 2.81% dip over the weekend, XRP is currently valued at $2.47. This price point is significant as it marks a re-test of the resistance trendline that had been previously broken in the daily chart.

From a wider perspective, the resistance trendline formed a bullish formation, which is often seen as a sign of continued uptrend with significant potential price objectives.

Hence, the ongoing retest comes as a lucrative buying opportunity for price action traders.

As a crypto investor, I’m finding myself buoyed by the prevailing bullish sentiment. The Relative Strength Index (RSI) line is persistently holding above the midpoint, suggesting a robust upward trend. Additionally, my focus is drawn to the well-aligned exponential moving averages, which are reinforcing this optimistic perspective, making me feel more confident about the bullish outlook.

XRP Price Targets $3.82

Following the trend-based Fibonacci analysis, the price has been hovering around the 23.60% retracement level, which is quite close to the significant $2.50 psychological barrier. A bullish breakout took place over the weekend, marked by a powerful bullish engulfing candle that represented approximately a 10% surge in value.

Hence, the breakout rally is expected to gain momentum after the retest phase.

According to Fibonacci analysis, the projected short-term prices for XRP are approximately $3.42 and $3.82. To maintain its upward momentum, XRP must first break through the $3.42 level, which serves as a significant barrier due to psychological factors, before it can continue its bullish run.

From another perspective, the significant backing continues with the 50 Exponential Moving Average (EMA) line at $2.10 and the $2.00 psychologically important level.

Veteran Chart Master Backs XRP Rally

In a more current update about X, experienced technical analyst Peter Brandt underscores a favorable indication for XRP. The graphical representation shows a bullish surge out of a triangle configuration and XRP surpassing the psychologically significant level of $2.50.

Leader of the pack $XRP

— Peter Brandt (@PeterLBrandt) January 11, 2025

The temporary dip we’re seeing might serve as a chance to reconfirm a bullish trend. At the same time, the Average True Range (ATR) and Directional Movement Index (ADX) values in Peter Brandt’s chart are showing contrasting signs. The ATR, which is currently at 0.177, suggests that volatility is relatively low but slightly increasing.

Although the ADX, now at 15.48, indicates a lessening trend, the rising ADR signifies increased optimism among bulls. However, the falling ADX implies a decrease in momentum.

While ADR is going up, showing more bullishness, the ADX going down suggests less momentum.

Gary Gensler’s Exit to Fuel Bullish Chances

The change in leadership at the U.S. Securities and Exchange Commission (SEC), with Gary Gensler stepping down after Joe Biden’s inauguration on January 20th, may foster optimistic market attitudes towards XRP.

In the approaching days, this could serve as an encouraging influence, likely boosting the number of speculative trades related to XRP and the overall cryptocurrency market.

It appears that XRP is poised for an uptrend, backed by robust technical signals and encouraging fundamental aspects that could foster expansion. The current testing phase, coupled with a constructive trend, as suggested by Peter Brandt’s analysis, paves the way for a surge potentially reaching $3.42 and beyond.

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2025-01-13 12:22