According to an analysis by
Cointelegraph, the XRP price shows signs of a possible correction, similar to the movements seen in 2018 after reaching record highs. At the same time, a technical target of
$4.60 remains in sight within a bullish pattern.
XRP Market Analysis
On January 29, the XRP price dropped by
4%, reaching a low of
$3.02. Analysts at Cointelegraph indicate that there is a downside risk due to the current market structure.
Bearish Scenario: Breakdown of Symmetrical Triangle to $2.50
Chart analysis shows that the XRP price is forming a
symmetrical triangle pattern, a formation that can predict both upward and downward movements.
Key Observations:
- Symmetrical triangles often indicate a neutral phase where a breakout in either direction is possible.
- If XRP breaks below the lower trendline, the price could drop towards the 50-day exponential moving average (EMA) at $2.57 or even as low as $2.50.
- This would represent a potential correction of 18% from current price levels.
- Conversely, a breakout above the triangle could push XRP towards $3.75, depending on the strength of the move.
Declining Activity Among XRP Holders
According to data analyzed by
Cointelegraph, XRP holder activity has been decreasing.
Key Data:
- The number of active XRP addresses dropped from 108,771 on December 2, 2024, to 40,292 on January 28, 2025.
- This represents a decline of over 39% in just 10 days, coinciding with a 10% price drop.
This trend suggests that many investors are taking profits after the strong surge to
$3.40. If this pattern continues, the XRP price could drop further before a recovery takes place.
Bullish Scenario: Potential for a Rise to $4.60
Despite the current consolidation, the XRP price remains within a
bullish flag pattern.
Key Points:
- This pattern emerged after the price surged from $2.27 to $3.40 between January 10 and 16.
- Currently, XRP is trading within a descending parallel channel, with the upper boundary of the flag at $3.30 acting as a key resistance level.
- A breakout above this level could trigger a new rally.
- The bullish price target, calculated based on the previous surge, is around $4.60, representing a potential 52% increase from the current level.
Disclaimer: This is not financial advice. Always conduct your own research and seek professional guidance.