- XRP is consolidating after a surge, with support levels around $1.57-$1.81, offering optimal entry points.
- To maintain a bullish momentum, XRP needs to close above $2.12, with $2.75 as the next resistance level.
- Open interest for XRP has risen 0.53%, reaching $1.99 billion, indicating positive market sentiment.
XRP, Ripple’s native token, appears to have the possibility of another big price movement, and many traders are indeed watching the cryptocurrency price. At press time, XRP is priced at $2.0616 and is up by only 3.39% over the past 24 hours. A deep market analysis reveals that the token could be prepared for a new spike.
A Deep Look at XRP’s Consolidation Phase
XRP has been in a consolidation phase after an explosive price surge earlier. Michaël van de Poppe, a well-known crypto analyst, noted that XRP has been increasing, after which it started consolidating.
Michaël believes that the higher time frame support zones will likely be challenged once more. This could be a good entry point for those who wish to build long positions in Ripple at a better price.
Based on the support level outlined by Michaël van de Poppe, the price can be expected to drop before starting the upward trajectory, ranging from $1.57 to $1.81. This period of consolidation suggests that XRP may be waiting to retest support levels. Such a period is generally characterized by oscillations just sideways of the trend line, marking a strong breakout or continuation of a previous trend.
Analyzing XRP’s Bullish Momentum
According to the opinion of another expert, Egrag Crypto, the XRP bulls are starting to come back. On the December 30, 2024, trading date, he concluded that a close above the critical level of $2.12 could support its rally.
The analyst pointed out that XRP/USD recently pierced through the 0.236 Fibonacci retracement level, with the next important level at $2.75. A daily close above $2.12 would be a bullish signal, indicating that the bulls are in control and the price could continue its rise. Egrag Crypto also noted some bullish activity within the support zone, informing traders that buyers are in the market.
A Closer Look at Price Action and Indicators
Looking at the chart posted by CryptoWriter78 on X, XRP seems to be in a descending triangle, which is quite a bullish pattern. The chart shows a possible target price of $3.00 if the token crosses the resistance levels.
48 Hours Remain For XRP’s Yearly Candle Close: What’s Next?In addition, the Relative Strength Index (RSI) as of this writing is at 52.11, meaning XRP may go higher before it can be overbought. The volume patterns indicate that buying pressure could rise, a bullish signal for XRP.
The Role of Open Interest in XRP’s Future
Aside from price action and chart patterns, market sentiment is another factor that determines the future direction of the price of XRP. As per the latest information, the open interest of XRP has increased by 0.53%, reaching a value of $1.99 billion. This rise in open interest represents more traders’ activity in the market, and the prevailing bullish sentiment regarding the XRP token.
XRP is in a consolidating phase after a massive rally recently, and major influencers are expecting a further upward movement. It is highlighted that the critical resistance levels are found at $2.12 and $2.75. If they break, a more bullish move can be expected.
