XRP Price Surge in January 2025: Will XRP Break $2.9 Resistance and Reach New Highs?
2025-01-03
XRP is showing strong bullish momentum in early 2025, fueled by long-term holders soaking up short-term profit-taking and a breakout from a key symmetrical triangle pattern.
After gaining 7% in the first days of January, XRP is now eyeing the $2.9 resistance level, which could lead the cryptocurrency towards new all-time highs if buying pressure continues to dominate.
Here's why investors are optimistic about XRP's potential price surge.
Key Takeaways
1. Strong Bullish Momentum: XRP has risen by 7% at the beginning of 2025, extending its rally from the New Year, with long-term holders driving accumulation.
2. Key Technical Levels: XRP has broken out from a symmetrical triangle pattern and could test the $2.9 resistance if momentum continues.
3. On-Chain Signals: Data shows long-term holders absorbing short-term sell pressure, indicating strong buy-side demand and increasing Mean Coin Age, a sign of accumulation.
XRP Bullish Price Action in 2025
XRP has shown significant strength in the first days of 2025, pushing its price up by 7% on January 2.
The surge began during the New Year’s Day celebrations and continued as long-term holders (LTH) absorbed the profit-taking by short-term holders.
This accumulation could push XRP past the $2.9 resistance level, potentially setting up a new all-time high if momentum continues.
On-chain Activity
XRP's on-chain metrics reveal a clear trend of accumulation by long-term holders.
Despite a 12% price jump on January 1, which prompted over $1 billion in realized profits, the long-term holders have absorbed the sell pressure.
This is reflected in a rise in the Mean Coin Age metric, indicating that XRP is being held rather than sold.
The Dormant Circulation (90d) metric, which tracks the number of XRP tokens transferred that have been dormant for over 90 days, spiked during the sell-off.
However, the overall trend suggests that LTH are back in accumulation mode, soaking up the selling pressure from short-term holders.
Exchange Data
XRP's market activity across major exchanges further supports the bullish outlook.
Top exchanges like Binance, OKX, Bitstamp, and Bybit have all shown net outflows, indicating more buying pressure than selling. Only Coinbase reported a net inflow, which further suggests that buyers are dominant in the market.
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Technical Outlook: Symmetrical Triangle Breakout
XRP's price has broken out above a symmetrical triangle pattern, extending its rally into January. This breakout is a critical technical signal, indicating that XRP could target the $2.9 resistance level if the trend continues.
The Relative Strength Index (RSI) is above its neutral level, confirming bullish momentum, though the Stochastic Oscillator (Stoch) suggests that a minor correction may be on the horizon.
If XRP experiences a pullback, the key support levels to watch are the upper boundary of the triangle and the 50-day Simple Moving Average (SMA). A bounce off these levels would strengthen the upward momentum, potentially pushing XRP toward the $2.9 resistance.
In the last 24 hours, XRP saw over $11 million in liquidations, with $8.31 million coming from short positions. This shows that short sellers are getting squeezed, which could further fuel bullish sentiment.
Factors that Could Impact XRP Price in January 2025
1. Regulatory Clarity
One major factor that could impact XRP’s price is the regulatory situation. With the possibility of Paul Atkins assuming the role of SEC Chair on January 20, many expect a more pro-crypto stance from the SEC.
This could ease concerns over Ripple’s ongoing legal battles and add confidence to investors.
3. Market Sentiment
As long as long-term holders continue to accumulate and exchanges show net outflows, XRP's price could maintain upward momentum.
However, if the market experiences a broader downturn, XRP could face challenges breaking through the $2.9 resistance.
Conclusion
XRP is in a strong position to test its $2.9 resistance in January 2025, supported by strong accumulation from long-term holders and a technical breakout from a symmetrical triangle.
If buying pressure persists, XRP could surge to new highs, potentially setting the stage for a significant price rally.
However, investors should remain cautious of potential corrections and keep an eye on market sentiment and regulatory developments.
FAQ
1. What is the current outlook for XRP in January 2025?
XRP has shown strong bullish momentum in early January 2025, driven by long-term holders' accumulation and a breakout above a symmetrical triangle pattern. If momentum continues, XRP could test the $2.9 resistance.
2. Why is the $2.9 resistance level significant for XRP?
The $2.9 resistance level is a key technical point for XRP. A break above this level could pave the way for a new all-time high, signaling a continuation of the current bullish trend.
3. How do on-chain metrics support XRP’s price surge?
On-chain data shows that long-term holders are absorbing the sell pressure from short-term holders, as reflected in the rising Mean Coin Age and Dormant Circulation metrics. This suggests that buying pressure is dominant in the market.
Disclaimer: The content of this article does not constitute financial or investment advice.
