XRP Poised for 40% Surge as Bullish Technical Pattern and Regulatory Shifts Align
XRP, the payments-focused cryptocurrency, is forming a “descending triangle” technical pattern, signaling potential for significant price gains in the near term. This pattern, typically marked by a lower horizontal support line and a declining upper trendline, suggests that despite recent losses, XRP could be preparing for a 40% upward move.
The descending triangle pattern generally indicates a period of consolidation, with price movements narrowing between support and resistance. According to the CMT Association’s technical analysis theory, such patterns often culminate in a breakout, with bullish outcomes being more reliable and lucrative. These breakouts typically lead to an average gain of 47%, which could signal a 40% surge for XRP if it breaks above the upper trendline, resuming the rally that began in early November when prices were near 50 cents.
However, there are risks if the token fails to hold its support level, and a move below the horizontal support line around $2.00 could invalidate this bullish outlook.
Social sentiment also reflects growing optimism toward XRP. Santiment’s latest report indicates a surge in positive social media activity and market commentary surrounding XRP, outpacing that of Bitcoin (BTC) and Ethereum (ETH). This increased optimism aligns with XRP’s strong performance, which has seen a price surge of over 300% since the U.S. presidential election in November. The rally is largely attributed to the expectations of a crypto-friendly regulatory environment under the incoming administration, particularly with Ripple Labs, the company behind XRP, benefiting from more favorable policies.
The shift in U.S. regulatory leadership is further contributing to the upbeat sentiment. The departure of SEC Chairman Gary Gensler, known for his skepticism towards crypto, is expected to pave the way for a more crypto-friendly environment, potentially benefiting XRP. Ripple CEO Brad Garlinghouse noted last week that the new administration would bring an end to years of regulatory uncertainty, unlocking new business opportunities for Ripple Labs in the U.S.
Ripple has already reported signing more U.S. deals in the final six weeks of 2024 than in the previous six months, showcasing a direct “Trump effect” on the company’s local business prospects. Additionally, Ripple President Monica Long hinted that an XRP exchange-traded fund (ETF) could soon be approved, which would further fuel optimism around the token.
With bullish technical indicators, rising social sentiment, and an evolving regulatory landscape, XRP seems well-positioned for further growth, potentially making a strong move toward a 40% rally in the coming weeks.
