Changing regulatory tides in the US and favorable price action could see XRP rise by 40% in the near term.
Since hitting highs near $2.9 in early December, the payments-focused cryptocurrency XRP has lost ground to form what is known as a “descending triangle” pattern in technical analysis.
It is defined by a lower horizontal support line, which represents steady demand near a specific price level, and an upper, descending trend line, which represents shallower price bounces.
According to CMT Association technical analysis theory and analysis, descending triangles often end with a downward breakout. However, bullish breakouts are more reliable and profitable, producing an average profit of between 47% to 16%.
“In other words, XRP could rise by 40% or more if prices cross the upper downtrend line, signaling a resumption of the previous uptrend from the early November lows near 50 cents,” says CoinDesk Markets Analyst, Omkar Godbole.
“All bets are off if prices deviate from the pattern and move below the horizontal support line near $2.00,” Godbole adds.
Social metrics are also at a high level. A Wednesday report Sentiment tracking service Santiment said there was an “increased level of public optimism” toward the token, based on social media posts and market commentary — higher than that of bitcoin (BTC) or ethereum (ETH).
Since Trump’s election, XRP has seen its price rise by more than 300%, outpacing other major cryptocurrencies. This rise is largely due to the expectation of a cryptocurrency-friendly political environment under Trump, which includes easier regulatory paths for domestic cryptocurrency companies — such as Ripple Labs, the company closely linked to XRP.
A change in SEC leadership, especially the exit of Gary Gensler, who is seen as a crypto skeptic, may lead to a more favorable regulatory environment for XRP.
said Brad Garlinghouse, CEO of Ripple Last week That the next government ends years of regulatory limbo and opens up new local opportunities that were previously “frozen” under the old administration.
It’s 2025 and the Trump bull market is real. For Ripple, this has become even more personal after Gensler’s SEC froze our job opportunities here at home for years. The optimism is clear and very deserved.
today:
✅75% of open roles at Ripple are now US-based, while…– Brad Garlinghouse (@bgarlinghouse) January 5, 2025
Ripple Labs reported more US deals were signed in the last six weeks of 2024 than in the previous six months, showing a direct “Trump effect” on local business opportunities.
In an interview on Tuesday, Ripple CEO Monica Long mentioned the possibility of creating an XRP exchange-traded fund (ETF). “Soon” will become a reality Amidst the perception of a shift towards more favorable crypto regulations under the incoming Trump administration.
publish_date
