Changing regulatory tides in the US and favorable price action could see XRP rise 40% in the near term.
Since hitting highs near $2.9 in early December, the payments-focused cryptocurrency XRP has lost steam to forge what is known as a “descending triangle” pattern in technical analysis.
It is identified by a lower horizontal support line, which represents steady demand near a specific price level, and the upper descending trend line, which represents more shallow price bounces.
According to CMT Association technical analysis theory and analysis, descending triangles often end with a breakout to the downside. However, bullish breakouts are more reliable and profitable, producing an average profit of 47% to 16%.
“In other words, CoinDesk market 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 on a high note. A Wednesday report from sentiment tracking service Santiment said there is a “higher level of crowd optimism” toward the token, based on social media posts and market commentary, greater than that of bitcoin (BTC) or ether. (ETH).
Since Trump’s election, the price of XRP has increased by more than 300%, outperforming other major cryptocurrencies. This rise is largely attributed to the expectation of a crypto-friendly political environment under Trump, including easier regulatory pathways for local crypto companies, such as Ripple Labs, the company closely related to XRP.
The change in SEC leadership, particularly the departure of Gary Gensler, who has been seen as a crypto skeptic, could lead to a more favorable regulatory environment for XRP.
Ripple CEO Brad Garlinghouse said last week that the incoming administration ends years of regulatory limbo and opens up new internal opportunities that were previously “frozen” under the old administration.
2025 is here and the Trump bull market is real. For Ripple, this is even more personal after Gensler’s SEC effectively froze our trading opportunities here at home for years. The optimism is evident and well deserved.
Today:
✅75% of Ripple’s open positions are now based in the US, while…—Brad Garlinghouse (@bgarlinghouse) January 5, 2025
Ripple Labs has reported signing more deals in the US 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 President Monica Long noted that an XRP exchange-traded fund (ETF) could “soon” become a reality amid a perceived shift toward more favorable crypto regulations under the administration. Trump incoming.
