Author
Steve Muchoki
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
Key Notes
- The rise of XRP price towards a new all-time high will highly depend on Bitcoin’s performance in the near future.
- Ripple Labs has heavily invested in the development of proper infrastructure to enable seamless adoption of XRP globally.
The altcoin industry, led by Ripple Labs’ XRP XRP $2.43 24h volatility: 6.1% Market cap: $141.08 B Vol. 24h: $3.70 B , recorded a relief rally in the past 24 hours in tandem with Bitcoin’s brief rebound above $102K. The total crypto market cap edged 8% higher in the past 24 hours to hover about $3.45 trillion.
However, a closer look at the wider fundamentals and technical aspects reveals the recent crypto correction is not yet over. After the crypto market recorded a relief rally on Monday following the tariff war resolution between the United States and its neighboring states, the Chinese government announced different measures against US imports.
Earlier on Tuesday, China hit back at the US tariff measures, with a 15% levies for US coal and LNG plus 10% for crude oil, in retaliation to Donald Trump’s 10% tariff across all Chinese imports.
As a result, the crypto market will experience high volatility leading to more forced liquidations in the near term. In the past 24 hours, more than $540 million was liquidated from the crypto market.
XRP Price Closely Follows Bitcoin
After experiencing a significant resistance level of around $3.39 in mid-January, XRP price has experienced a similar correction to Bitcoin BTC $84 418 24h volatility: 3.0% Market cap: $1.67 T Vol. 24h: $28.79 B in the recent past. The initial bullish breakout from the six-year triangular consolidation has entered its first major correction after almost retesting its all-time high (ATH).
In the past two to three months, Bitcoin price formed a potential double top, coupled with a bearish divergence on the daily Relative Strength Index (RSI). The flagship coin has already dropped around 16 percent after hitting its all-time high of about $109K last month, thus retesting the lower border of a possible horizontal channel.
Meanwhile, XRP, which has a fully diluted valuation of about $254 billion and a 24-hour average trading volume of about $18 billion, has been forming a possible short-term correction pattern. In the daily time frame, the altcoin has formed two higher highs coupled with a bearish divergence on the RSI.
Consequently, if Bitcoin price consistently closes below the crucial support level around $92K, XRP price will likely drop towards the local lows of between $1.3 and $1.6.
No guarantees we will get it of course, but I'll be interested in a long on $XRP on a sweep of our local lows into the $1.30-$1.60 region.
More on this in my next Youtube video which I will probably record in a day or two. pic.twitter.com/0boEkAi5gn
— CrediBULL Crypto (@CredibleCrypto) February 4, 2025
Bigger Picture
The global XRP adoption, mostly fueled by institutional investors tapping into Ripple Labs’ cross-border blockchain solutions, will catalyze the next thrilling phase of the bull cycle. Moreover, the odds of the US SEC approving a spot XRP ETF in 2025 have significantly increased, following the filing from several fund managers led by WisdomTree.
The XRP bullish sentiment has also been bolstered by the expected crypto regulatory clarity in the United States under the Donald Trump administration.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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