XRP: Navigating Choppy Waters but Eyeing Long-Term Gains

Quick Rundown

• XRP is hovering around $2.07, slipping beneath an important upward trendline.
• Support between $1.97 and $2.00 is the bulls’ last stand.
• Analysts see a possible climb to $5-8 by late 2025, despite current challenges.
• The SEC settlement is a win for Ripple, sparking optimism for the longer term.
• Possible ETF approval in 2025 could spike institutional interest dramatically.

Current Market Jitters

Right now, XRP is under significant selling pressure, struggling to remain above key support levels. The recent breach of an important ascending trendline suggests the market’s momentum could be shifting. However, some experts are still upbeat about XRP’s prospects down the road, projecting ambitious targets for late 2025.

The coin is trading near $2.07, testing the waters on the lower Bollinger Band around $2.05. This comes after multiple failed attempts to interrupt past the $2.20-$2.30 range, which has now changed into a formidable resistance.

XRP Price on CoinGecko

Short-Term Technical Hurdles

The technical picture is not painting a rosy short-term outlook for XRP. The Ichimoku Cloud setup looks shaky, with the worth below the cloud, and immediate resistance coming from the Tenkan-sen and Kijun-sen lines at $2.13 and $2.12, respectively.

Compounding the bearish sentiment, the EMA cluster—comprising the 20, 50, 100, and 200-period moving averages—is pointing downward. Trading volume has dried up recently, making a swift turnaround unlikely with no major catalyst.

On a day by day scale, the horizontal support zone between $1.97 and $2.00 is crucial. Historically, it’s sparked strong rebounds, but repeated tests could mean it’s weakening.

Short-Term Outlook: Bearish Signals

If XRP closes below $1.97, we would see an extra slide to $1.80, and if the market mood sours more, $1.60 may very well be on the cards. For any rebound to collect steam, the bulls have to regain control above $2.30 and push past the $2.56-$2.60 area.

The day by day chart’s descending triangle pattern adds weight to the bearish outlook, often indicating further declines unless a breakout occurs above the upper trendline.

Weekly Perspective: A Tense Balance

On the weekly chart, XRP sits inside essential resistance and support zones, reflecting the highs of 2018 and 2021. The low trading volume may very well be the calm before a storm, signaling an explosive move on the horizon.

While the MACD hints at growing bearish momentum, other indicators like DMI and CMF show potential for a bounce. The ADX has already flashed a recovery signal, which could pave the way in which for a bullish crossover.

Long-Term Catalysts: The Silver Lining

Despite current headwinds, several aspects could boost XRP within the months ahead. The resolution of Ripple’s legal tangle with the SEC is seen as a giant win for the crypto world, with long-term positive implications for XRP.

Analysts are split on XRP’s future, with some predicting an increase to $3 by the tip of Q2 2025, while others envision even loftier heights. One outstanding crypto analyst suggests a bullish breakout could propel XRP between $5.85 and $8.07 in the approaching months.

The potential launch of an XRP ETF within the U.S. is viewed as a game-changer. The SEC’s decision to drop its appeal against Ripple has fueled speculation about regulatory clarity, with analysts giving an 85% likelihood of an ETF debut in 2025.

Beyond ETF chatter, Ripple’s expanding network of partnerships boosts confidence in XRP’s long-term potential. Their recent tie-up with Chipper Cash goals to boost cross-border payments in Africa, possibly increasing real-world XRP use.

In the near term, an increase to $3 through the $2.5 resistance is possible if XRP stays above $2. However, a dip to $1.80 doesn’t necessarily spell doom, as a bounce from the 2021 highs could see XRP reaching latest all-time highs by 2025.

Image Credit: coincentral.com