XRP Faces Key Resistance at $2.73 Before Potential Rally to $11
XRP, the cryptocurrency linked to Ripple, is under scrutiny as analysts anticipate a potential price rise to $11. However, before this can occur, XRP must navigate a short-term price correction. Despite a positive long-term outlook, a pullback is expected before any significant rally.
The key resistance level for XRP is currently at $2.73, which crypto analyst Ali Martinez identifies as crucial for maintaining a bullish trend.
The Critical Breakthrough
A breakthrough at $2.73 could lead to a climb towards $11, while failure to surpass this resistance may result in a decline to a low of $2.05. Given the asset's volatility, investors are closely monitoring XRP's movements for indications of a rally or correction.
$XRP is still consolidating within the pennant of a massive bull pennant pattern. Until the $2.73 resistance is broken, a pullback to $2.05 remains possible before a potential breakout to $11! pic.twitter.com/ET39FJMtAc
— Ali (@ali_charts) January 4, 2025
Technical Viewpoint
From a technical analysis perspective, analysts following the Elliott Wave Theory suggest XRP is undergoing a correction after a five-wave impulsive rally. They anticipate an ABC correction pattern forming.
This type of correction typically follows a long rally and serves as a pause before the next significant movement. Analysts expect this correction to conclude around mid-January 2024, presenting traders with an opportunity to buy before a new rally.
While this correction may temporarily decrease the price, it could pave the way for a substantial increase in the coming months.
Bullish Sentiment
Despite the risks associated with short-term corrections, sentiment remains largely bullish for XRP. A recent resolution regarding Ripple's ongoing court case with the US Securities and Exchange Commission (SEC) has contributed to this sentiment.
A favorable ruling has alleviated much uncertainty surrounding XRP's regulatory status, enhancing its attractiveness as an investment. There are expectations for more supportive crypto-friendly policies from the government, contributing to upward momentum.
A Brighter Future Ahead For XRP?
Although a correction is anticipated in the near term, the long-term outlook for XRP remains promising. When the correction concludes, it may provide a favorable entry point for potential investors ahead of the next rally.
The path to $11 is still open, but if XRP continues on its current trajectory, it will be noteworthy. Traders and investors should remain attentive to key resistance levels and market trends.
At the time of writing, XRP was trading at $2.41, reflecting a 0.1% increase over 24 hours and a 15.4% increase over the week.
Featured image from Trackinsight, chart from TradingView