- XRP faces resistance at $3.06 and $3.41, while support at $2.70 could prevent further declines if selling pressure increases.
- The MACD shows bearish momentum, but a break above $3.50 could trigger a parabolic rally, potentially pushing XRP toward $14.
- Regulatory optimism, including SEC leadership changes, boosts investor confidence, but uncertainty keeps XRP consolidating below key levels.
Ripple released its Q4 2024 XRP Markets Report on January 31, showing influential moments in the crypto market. XRP saw a 280% price movement as regulatory uncertainty diminished, boosting investor confidence.
On February 1, at the time of publication, XRP was trading at $2.98, a 3.16% decline in 24 hours and a 3.63% drop over the past week. However, the token remained 24.37% higher over the past month, with a market cap of $172.04 billion, a 3.11% decline.
Price Levels and Indicators
XRP traded between $2.94 and $3.07 on February 1, with a trading volume of 54.72 million XRP. XRP has immediate support at $2.70, which aligns with the lower Bollinger Band. If selling pressure increases, this level could act as a demand zone.
Source: TradingView
A mid level support at $2.80 is the psychological barrier that could provide a temporary price bounce. On the upside, the first resistance is at $3.06, coinciding with the middle Bollinger Band and the 20 day SMA.
Breaking above this level could restore bullish momentum. A second resistance at $3.41, aligns with the upper Bollinger Band, a zone where sellers might emerge. Bollinger Bands indicate that price movement remains below the middle band, suggesting bearish pressure.
If XRP moves above $3.06, buyers could push it toward $3.42. However, a drop below $2.70 could extend losses to $2.50 or lower.
Bearish Momentum and Market Outlook
The MACD shows a bearish crossover, with the MACD line at 0.1350 moving below the signal line at 0.1746. A declining histogram at -0.0396 further confirms the weakening momentum. If the MACD line crosses below zero, stronger downside movement could follow. However, a bullish crossover could shift momentum in favor of buyers.
If XRP fails to break $3.06, it could decline toward $2.80. A drop below $2.70 could push prices further down to $2.50. On the positive side, reclaiming $3.06 could lead to a rally toward $3.42, with an extended breakout potentially leading to a $3.70-$3.90 range.
Potential for a Larger Move
According to Steph is Crypto, XRP’s current market pattern resembles past price compression phases before parabolic rallies. The previous breakout saw a 484.16% surge, taking the price up by $2.38 from its base.
Source: Steph is Crypto
The pattern suggests XRP might be in an accumulation phase, preparing for another large move. If XRP surpasses $3.50, a breakout could lead to a major rally. Historical trends show that Bollinger Band squeezes often precede strong price movements.
The next resistance at $5 is a psychological barrier, and a sustained move above this level could confirm a long term uptrend. If the historical pattern repeats, XRP could rally toward $14, a 484.08% increase.
As per Steph this is a compression phase rather than a dip. A break above $3.50 with strong volume could indicate the start of a major move, while failure to break the resistance may result in further consolidation or downside pressure.
Ripple and SEC Case
Optimism grew over the possibility of the SEC withdrawing its appeal against the Programmatic Sales of XRP ruling. Former SEC Commissioner Paul Atkins’ nomination as the next SEC Chair by President Trump added to the bullish sentiment.
Legal experts believe Atkins could change the SEC’s stance on crypto enforcement. Despite this, XRP pulled back from its December high of $3.39 as investors awaited confirmation on the Ripple case. Speculations are that Acting Chair Mark Uyeda might delay decisions until Atkins assumes office.
