XRP price has been trading inside a symmetrical triangle pattern which is commonly a consolidation pattern before a breakout. This pattern has the trendline connecting the high and low of the asset, and signifies consolidation. It is followed by a quick breakout of the trend.
As has been pointed out, this potential breakout may happen on January 16, 2025, based on one technical signal.
In the last one week alone, XRP price has been more volatile. It is currently trading at $2.35 as some investors took their profits after XRP could not cross the $2.50 threshold. This has been allied with the change in the market conditions especially the further increase in the sell side pressure.
Data from the market indicates that the Taker Buy/Sell Ratio has fallen to 0.93. This shows that the sell orders are dominant.
Key Support and Resistance Levels Define XRP Price Trajectory
From the technical perspective, the first level of resistance that XRP has to overcome is at $2.20 which is a vital level for continuing the upward movement. A break below this level could lead to further decline of the price and may fall towards $1.85.
Moreover, the Relative Strength Index (RSI) that is currently in the descending trend suggests that XRP’s price is losing momentum. This means that the accumulation has seen some fade away, meaning more downside is possible if sentiment does not change. Further decrease of RSI will keep XRP closer to the oversold area. Thus the support at $2.20 could be crucial for the bounce back.
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On a positive note, $2.50 is still the critical level of resistance. This level can be linked to the middle Bollinger Band. It is the initial level of resistance to any potential bounce. If XRP is able to break above this level, it could then open the door to a move up towards $3. But any further price uptick will highly depend on the changes in market dynamics and even more, buying pressure.
Symmetrical Triangle Sets the Stage for Q1 2025
A symmetrical triangle pattern suggests that buyers and sellers are evenly matched. A break out is likely to occur at the end of the triangle. From past prices it has been noticed that after breaking out of these formations the prices can either rise or fall sharply.
In the event that the XRP price is to persist with the upward trend, analysts expect this to hold ground up to the first quarter of 2025 with a possibility of breaking through the $3.77 level. However, in case the price declines below the low of the previous day, it may serve to strengthen bearish sentiment and prices may continue to weaken for one or two more days. XRP may keep on with the early year trend direction after the triangle resolution by January 16, 2025.
Market Sentiment and Derivatives Data Reflect Sell-Side Pressure
But the data from the derivatives market also paint the same picture of increasing sell-side pressure. The Taker Buy/Sell Ratio has been decreasing. It suggests that the sell pressure has been higher than the buy pressure hence exerting pressure on the price of XRP. Also, trading volumes have also lowered over the time. This can indicate a decrease in the involvement of market participants.
This lack of activity is normal after a big rally has taken place in the market. XRP rose by 25% between December 30 and January 4 due to a positive sentiment in the broader cryptocurrency market. However, the lack of continuous growth has resulted in selling pressure hence causing the recent price decline.
Furthermore, more recently, experts voiced XRP price to reach $11 in 2025 with the Bollinger Bands contraction indicating increased volatility soon.
Such optimism stems from the positive technical dynamics and rising sentiment regarding the chances of Ripple to defeat the SEC in court. Traders’ activity is evident from the open interest, currently at $1.98 billion, which implies that price could break out in the near future.
