The recent surge in Bitcoin (BTC) prices, surpassing the $100k mark, has profoundly influenced the altcoin market, notably affecting Ripple Labs-backed XRP. With the total altcoin market capitalization confirming an upward trajectory, large-cap altcoins have experienced significant gains over the past five weeks. As the crypto market undergoes a wave of cash rotation, investors must navigate the bullish sentiment surrounding overbought assets with caution. Understanding the intricacies of a bull market, particularly in the context of leveraged and futures markets, is essential for maximizing profits.
XRP Price Expectations in the Near Term
Following an impressive rally of over 400 percent in recent weeks, XRP has encountered a formidable resistance level just below its all-time high. The altcoin’s weekly Relative Strength Index (RSI) remains above 84 percent, suggesting a potential short-term correction. Crypto experts, including Mathew Dixon, CEO at Evai Crypto Ratings, predict a pullback for XRP as the initial excitement around Trump’s re-election subsides.
From a technical analysis perspective, renowned crypto analyst Michaël van de Poppe suggests that XRP may find strong support between $1.81 and $1.57 should a correction occur in the upcoming weeks. He notes that while long-term prospects remain promising, identifying optimal entry points in the short term is crucial. According to van de Poppe, the daily timeframe indicates starting points at $1.80 and below, creating a favorable environment for day traders.
Fundamental Outlook
The substantial rise of XRP in recent months can be attributed to robust underlying fundamentals, alongside the re-election of Donald Trump as the 47th President of the United States. Trump’s appointment of cryptocurrency advocate Paul Atkins as the chair of the Securities and Exchange Commission (SEC) further fuels optimism among XRP supporters.
Amid the ongoing Ripple versus SEC lawsuit, the XRP community eagerly anticipates a favorable resolution, with expectations that charges may be dropped as Ripple pays the civil fine of approximately $125 million. Institutional investors have demonstrated increasing interest in XRP, with several firms, including WisdomTree, Bitwise, Canary Capital, and 21Shares, filing for spot XRP ETFs with the US SEC.
As Ripple gears up to launch its fiat-backed stablecoin, RLUSD, developments within the XRPL network continue to drive mainstream adoption of XRP. These advancements underscore the potential for sustained growth and innovation in the altcoin market.
