XRP, the digital currency behind Ripple, has been a hot topic recently, with analysts predicting a possible price increase to $11. However, before this can happen, XRP will have to face a major challenge : short-term price correction. Despite the positive long-term outlook, the asset is expected to face a pullback before any meaningful rally can take place.
The resistance at $2.73 is the most important level at the moment XRP need to recover for further price movement. Crypto analyst Ali Martinez believes that this resistance is crucial for maintaining a bullish trend of XRP.
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The Critical Break
A break through at $2.73 and continued upward trend could open the door to see the digital asset touch $11. However, failure to do so could spell trouble for the coin, taking it all the way down to a low of $2.05.
With the highly volatile price range, investors are closely monitoring the movement of XRP to determine if it is going to rally or correct.
$XRP still securing within penny a large bull pennant pattern. Until the $2.73 resistance is broken, a pullback to $2.05 is still possible before a break out to $11! pic.twitter.com/ET39FJMtAc
— Ali (@ali_charts) January 4, 2025
Technical Perspective
In terms of technical analysis, other well-known analysts following the Elliott Wave Theory say that XRP is in a correction. After going through a five-wave impulsive rally, they believe that XRP is now setting up for an ABC correction pattern.
This type of correction usually comes after a long rally and acts as a breather before the next big move. Other analysts expect the correction ending around mid-January 2024, thus giving traders a good opportunity to buy in before a new rally.
This correction could push the price down for a while, but it could set the stage for a much bigger increase in the coming months.
Bullish Sensation
With all the risks associated with a short-term price correction, overall sentiment remains strong for XRP. One of the main reasons for this is a resolution that happened just recently regarding Ripple's long run court case by the US Securities and Exchange Commission (SEC).
Favorable ruling on the issue removed much of the uncertainty from XRP's regulatory position in the public eye and made it one of the most attractive investments for many. Positive: Expectations for more appropriate policies from the government and not one for a wider market, creating an upward trend.
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A brighter future ahead for XRP?
Although a long-term correction can be expected, the long-term outlook on XRP is still going well. When this correction plays out as expected, it can provide a good entry point for those interested in investing with the possibility of the next rally.
The road to $11 is still ahead but if XRP continues on the same path, it will be a show to watch. As always, traders and investors need to be alert in anticipation of key resistance levels and market trends.
At the time of writing, XRP was to buy for 2.41 US dollars. up 0.1% and 15.4% in the daily and weekly time frames.
Featured image from Trackinsight, chart from TradingView
