Ripple’s XRP has become one of the best-performing cryptocurrencies in the top 10, with its price soaring nearly 270% in just one month. This remarkable surge has brought XRP to levels not seen since 2021. Currently ranked 5th by market cap at $108 billion, XRP’s strong upward momentum has left traders wondering: how high can its price go? Could $2 be its next target?
Key Factors Driving XRP Price
XRP’s recent price surge is supported by several positive factors. Key developments in the Ripple vs. SEC case, speculation about an ETF, and increased trading activity have all added to its momentum.
Meanwhile, XRP saw a massive jump when it was announced that SEC Chair Gary Gensler will leave office on January 20, the same day Donald Trump is set to take office. This has raised hopes for an end to the long-running Ripple lawsuit.
Another factor is the recent change involving Ripple’s stablecoin, RLUSD. As reported by Coinpedia news, Ripple burned 46.67 million RLUSD tokens in one day, leaving only 100,000 tokens on each blockchain. This move has increased optimism among investors.
What Do Technical Indicators Hints?
However, technical indicators suggest a different story for XRP as they hint that XRP still has room to grow. Meanwhile, the Relative Strength Index (RSI) currently stands at 74.8, signaling overbought conditions.
While this may suggest caution for traders, historical trends show that XRP has reached RSI levels of 80 or higher before corrections, indicating that the current momentum could push prices even higher.
In addition to this, the Chaikin Money Flow (CMF) has turned positive at 0.08, reflecting growing capital inflows. While not as high as in previous bullish periods, the positive shift indicates renewed buyer confidence and further potential for growth.
Can XRP Go Higher?
If the current trend continues, XRP could soon test $2, marking a significant milestone. Beyond that, analysts suggest that breaking key resistance levels could open the door for even higher gains, even hitting its ATH price of $3.38 soon.
However, a loss of momentum could trigger a correction, with support levels at $1.21 and $1.05 acting as safety nets. For now, XRP’s strong bullish indicators and favorable market conditions position it well for further gains.
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