The XRP market is buzzing with renewed optimism as recent technical patterns and on-chain metrics highlight growing buyer confidence. At the latest price rebound, two Spinning Tops candlestick patterns emerged, followed by a bullish engulfing candle—both classic indicators of bullish momentum.
Recent data points to a surge in XRP-related activity. The payment volume between accounts and the number of executed transactions reached multi-week highs on January 1, 2025. This uptick underscores increasing network activity, aligning with the positive price movement.
Ripple Labs Releases 500 Million XRP from Escrow with a Notable Memo
To mark the New Year, Ripple Labs unlocked 500 million XRP from escrow. Interestingly, the transaction included a memo stating, "January 20th is around the corner. Donald Trump will be in the WH, and we are going to make crypto great again!” Ripple also pledged $5 million in XRP for Donald Trump’s upcoming inauguration, signaling its strategic involvement in high-profile events.
The latest XRP price surge triggered significant liquidations. Coinglass data reveals a 31.51% spike in open interest, reaching $2.5 billion. Additionally, 24-hour liquidations soared to $14.32 million, with $11.60 million attributed to short positions.
Key liquidation levels are identified at $0.407 on the downside and $0.447 on the upside, according to the XLM exchange liquidation map. If XRP rallies to $0.447, an estimated $15.14 million in short positions could be liquidated. Conversely, a drop to $0.407 might liquidate $13.60 million in long positions.
Market sentiment is shifting, as evidenced by the rise in XRP’s long trader percentage. On December 29, long positions accounted for 47.83%, indicating bearish dominance. By January 2, the percentage climbed to 50.55%, crossing the 50% threshold and suggesting increased confidence in XRP's potential price appreciation.
The daily XRP chart reveals a bullish pennant pattern forming, with the price nearing a potential breakout. Analysts suggest that a successful breakout could push XRP to the next resistance level at $2.68 in the short term. If the breakout fails, the price may remain consolidated above $2 until the pattern reaches its apex.
Looking ahead, analysts remain optimistic about XRP's future. Forecasts suggest that XRP could surpass its all-time high of $10, driven by strong technical indicators and a potential resolution to the long-standing XRP lawsuit. The combination of legal clarity and robust on-chain metrics positions XRP for a bullish trajectory in the coming year.
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Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
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