Introduction
The year 2025 has begun on a bullish note for XRP, with the price rising by 11.92% on January 1st, marking its largest daily return since December 2nd. This surge in value comes as Ripple prepares to welcome Donald Trump’s inauguration on January 20th.
Breakout Above Key Resistance
On shorter time frames, the XRP/USD trading pair has broken above a key resistance level at $2.30 after testing support around $2 over the past two weeks. This breakthrough is a significant development in the market, as it indicates a shift in investor sentiment towards bullish positions.
Ripple’s Escrow Transfer
Ripple has made a significant move by transferring 500 million XRP tokens from its escrow account to another Ripple-owned wallet. While this transfer may seem like a routine operation, it comes with an interesting note that has piqued the market’s attention: "January 20th is around the corner. Donald Trump will be in the WH, and we are going to make crypto great again!" This comment suggests a connection between Ripple’s actions and the upcoming inauguration of Donald Trump.
XRP Futures Market Flips Bullish
The XRP futures market has also seen a significant shift in sentiment, with open interest (OI) increasing by 25% over the past two days. After experiencing a 54% drop in OI in December, the crypto asset’s OI has rebounded, indicating a surge in new long positions.
Short Liquidations
Short liquidations have been at their highest since December 20th, with over $15 million wiped out over the past 24 hours. XRP short liquidations were also the third largest liquidated crypto asset, contributing to the price increase.
Exchange Reserve on Binance Decreases
The supply of XRP on Binance has decreased from 2.97 billion to 2.90 billion during the final week of December. This decrease indicates that spot buyers may have purchased the dip as the XRP price corrected from $2.25 to $2.00.
Key Resistance Levels to Watch
On longer time frames, XRP maintains a bullish market structure on the daily and weekly charts but is expected to experience price fluctuations in the medium term. A key resistance range between $2.50 and $2.60 may cap XRP’s rise, as this level has acted as a key reversal point after XRP reached its yearly high of $2.90 in 2024.
Confluent Trendlines
The current trendline pattern on the XRP/USD pair is symmetrical, without a confirmed breakout. The resistance range between $2.50 and $2.60 is confluent with the triangle’s descending trendline, which the pair might fail to break again.
Trading Implications
A daily candle close above $2.60 would confirm a bullish breakout, leading to new yearly highs above $3 or a 26% gain. Conversely, a drop to $2.10 may hinder immediate bullish price action. A daily close above $2.30 will retain investors’ confidence, while a close below $2.30 might usher in another period of profit-taking.
Conclusion
The XRP market has begun the year on a strong note, with the price rising significantly and the futures market flipping bullish. However, it is essential to keep in mind that every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
Important Note
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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