A market analyst now forecasts an XRP reach of $6 in the near future, outlining a potential timeline for this price increase.
Current Market Conditions
XRP has faced significant challenges in a volatile market, largely influenced by bearish trends stemming from recent statements by the Federal Reserve.
Fed Chair Jerome Powell indicated that interest rate cuts might not occur as soon as some had hoped, with expectations now set for 2025.
This outlook has added pressure to the cryptocurrency market, causing a ripple effect across various digital assets.
Recent Price Movements
Amid these broader market concerns, XRP experienced a sharp decline, losing 9.91% on Wednesday and an additional 3.24% the next day.
The token plummeted to $1.96 on December 20. However, a wave of bullish sentiment emerged, leading to a recovery of 4.35%.
XRP is currently trading at $2.22.
Analysts like CryptoBull believe that this recent downturn may set the stage for a significant breakout.
He has identified a symmetrical triangle formation in XRP’s price chart, suggesting that the cryptocurrency is nearing the end of its correction phase.
Understanding the Symmetrical Triangle
The 1-day price chart reveals that the symmetrical triangle pattern formed after XRP’s significant drop from its seven-year peak of $2.90 on December 3.
This pattern often signifies market indecision, as buyers and sellers vie for control.
With XRP approaching the apex of the triangle, a breakout appears imminent.
The formation can be broken down into distinct waves: a steep decline (wave A), a recovery (wave B), and the latest correction resulting in lower lows (wave C).
CryptoBull’s analysis indicates that a potential recovery could lead XRP to retest the triangle’s upper trendline, completing wave D.
However, this retest may be followed by another pullback (wave E), which could ultimately allow for a breakout above the triangle’s resistance.
Key levels to watch include $2.40, identified as immediate resistance, and $2.00, which serves as major support.
A successful breakout above $2.40 could see XRP testing its previous high of $2.90 before targeting the ambitious $6 mark.
CryptoBull has expressed confidence that this milestone could be achieved in the coming days.
Historical Context: The 2017 Fractal
In a separate analysis, CryptoBull has drawn intriguing parallels between XRP’s current trajectory and its historic rally in 2017.
He notes that in March of that year, XRP began a multi-month surge leading to its all-time high.
Currently, CryptoBull points out that XRP has already met a critical target of $1.96, suggesting that if this historical pattern continues, XRP could soar to $6.28 by the end of December 2024.
Additionally, he forecasts an extraordinary rise to $40 by the end of January 2025, highlighting the potential for significant gains in the near future.
As XRP navigates this complex market landscape, the insights provided by analysts like CryptoBull offer a glimmer of hope for investors.
With a potential breakout on the horizon and historical patterns suggesting a bullish trajectory, many eyes will be on XRP in the coming days as it strives to achieve new heights.
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Also Read: XRP’S Drop Now Sparks Optimism
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