Ripple’s XRP Price Jumps 11.92% on January 1, 2025
The price of XRP registered its largest daily return since December 2, rising by 11.92% on January 1, 2025. This significant increase comes as Ripple looks forward to Donald Trump’s inauguration on January 20. The XRP/USD trading pair has been testing key resistance at $2.30 over the past two weeks.
XRP Price Reaches Key Resistance at $2.30
On shorter time frames, the XRP/USD trading pair broke above key resistance at $2.30 after testing $2 as support over the past two weeks. The recent price action suggests that investors are becoming more optimistic about the future of XRP.
Ripple Moves 500M XRP from Escrow to Another Wallet
In a significant development, Ripple moved 500 million XRP tokens from its escrow account to another Ripple-owned wallet on January 1, 2025. This transaction is valued at over $1 billion and has likely contributed to the recent price surge.
Catalyst for XRP’s Price Increase
An interesting note attached to the transaction caught 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 that Ripple may be anticipating a favorable regulatory environment under the new administration.
XRP Futures Market Turns Bullish
The XRP futures market has flipped bullish on the first day of 2025. After a 54% drop in open interest (OI) in December, the crypto asset’s OI jumped by 25% over the past two days. Data from CoinGlass indicates that the open interest increased from $1.86 billion on December 31 to $2.37 billion on January 2, 2025.
Short Liquidations Reach Highest Levels Since December 20
Short liquidations have been at their highest since December 20, with over $15 million wiped out over the past 24 hours. XRP short liquidations were also the third largest liquidated crypto asset, contributing to XRP’s bullish breakout.
Spot Buyers Buy the Dip
After a flash rise in the XRP exchange reserve at the beginning of December, the supply on Binance decreased from 2.97 billion to 2.90 billion during the final week. This indicates that spot buyers possibly bought the dip as XRP price corrected from $2.25 to $2.00.
Key Resistance Range for XRP Price
On longer timeframes, XRP maintains a bullish market structure on the daily and weekly charts but price fluctuations can be expected in the medium term. A key resistance range between $2.50 and $2.60 may cap XRP’s rise. This particular level has acted as a key reversal point after XRP reached a yearly high of $2.90 in 2024.
Symmetrical Triangle Pattern
As shown below, XRP oscillates within the trendlines of a symmetrical triangle pattern without a confirmed breakout.
Key Levels to Watch for XRP Price
A daily candle close of $2.60 would confirm a bullish breakout above this key trendline, leading to new yearly highs above $3, or a 26% gain. Conversely, a drop to $2.10 may hinder immediate bullish price action.
Investor Confidence and Profit-Taking
A daily close above $2.30 will retain investors’ confidence, but a close below $2.30 might usher in another period of profit-taking. 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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