XRP even recently surpassed a $130 billion market cap. This unexpected surge led many to speculate that it’s a mark of the beginning of the next bull run. That surge has impressed many a trader and investor. They are now exploring the technical indicators driving this momentum and discussing the risks that come with it. With an enviable alchemy of French pragmatism and cosmopolitan expressiveness, Julien Duval writes about cryptocurrency trading and capital markets with punch and insight. He combines rigorous logic with new market stories to produce work that is useful, integrative, and constantly forward-looking.

Technical Indicators Pointing to Bullish Momentum

There are multiple technical indicators that XRP has a bullish outlook. Moving Averages (MA) Moving averages are one of the most important indicators in market analysis. This category consists of 10-, 20-, 30-, 50-, 100-, and 200-length Simple Moving Averages (SMAs) and Exponential Moving Averages (EMAs). Additional technical indicators that play a vital role are Ichimoku Cloud, VWMA, HullMA. Oscillators are important tools in measuring market sentiment. These technical indicators are Relative Strength Index (RSI), Stochastic, Commodity Channel Index (CCI), Average Directional Index (ADX), Awesome Oscillator (AO), Momentum, Moving Average Convergence Divergence (MACD), Stochastic RSI, Williams %R, Bulls and Bears Power, and Ultimate Oscillator (UO).

At present, XRP technical indicators’s general rating is Bullish, with a average rating signal of “buy”. The 1-week rating strengthens this “buy” signal, and the 1-month rating shows an even stronger “buy.” XRP’s bullish price action over the past couple of weeks certainly adds to this rosy outlook. The cryptocurrency has jumped 25% in the last week, recovering back above the 50% Fibonacci retracement level.

The Ichimoku Cloud bullish setup for XRP corroborates further price increases for XRP. When the Tenkan-sen (blue line) is located above the Kijun-sen (red line), this indicates short-term bullish momentum. The other two Ichimoku lines, the Kijun-sen and Chikou Span lines can serve as potential support and resistance levels to watch for XRP. When the Kijun line is completely flat, it may indicate that the price will be bouncing back and forth in a given range. If this technical analysis holds, XRP’s price can increase up to $2.50. Further resistance could be encountered at $2.64, $2.74, and $2.83, but there is potential for it to return to the recent $0.93 peaks from July 2023.

Potential Price Targets and Support Levels

Additionally, XRP has drawn the interest of analysts from around the world, giving several price targets ranging from short-term price predictions to long-term expectations.

Short-Term Targets:

  • November 2025: $1.89 (minimum), $1.98 (maximum), $1.94 (average)
  • September 2025: $1.86 (minimum), $1.89 (maximum), $1.88 (average)
  • July 2025: $2.13 (minimum), $2.32 (maximum), $2.23 (average)

Medium-Term Targets:

  • 2025: $5 (predicted by analyst Oscar Ramos, contingent on ETF approval and improved regulatory clarity)
  • Five-year plan: $2.10
  • Five years: $4.08 (predicted by some analysts)

Long-Term Targets:

  • 2028:
    • January: $5.93 (minimum), $7.03 (maximum)
    • December: $8.08 (minimum), $10.10 (maximum)
  • 2029: $11.56 (minimum), $14.01 (maximum), $11.97 (average)
  • 2033:
    • January: $38.15 (minimum), $45.16 (maximum)
    • November: $48.29 (minimum), $62.41 (maximum)
  • 2040: $1,142 (minimum), $1,452 (maximum), $1,231 (average)

Downside risks remain. If XRP sits below support at $2.00, this might translate to more sped up losses in the direction of the 200-day EMA at $1.96. This increased volatility could push the price below $1.86 to retest April’s lowest level at $1.62. Such a drop would induce liquidations and lead to profit-taking.

Risks and Considerations

Though the technical indicators and expert opinions project a bullish outlook, it’s important to consider the cautionary tales, too. This bullish momentum was evidenced as XRP’s daily Relative Strength Index (RSI) had already crossed 70 on January 16, signaling overbought conditions. This could point to an overbought asset that is due for a pullback or sideways consolidation.

Even a 20% drop is worrisome as the 20-day EMA is now floating around $2.52. If the buying pressure evaporates and the trend is reversed, XRP might retreat to reclaim support at $2.18. Losing this level would open the door for a much larger scale correction.

While this continues the strong bullish momentum, it’s probably a good time to step back, take a breath, and prepare for the possibility of a short-term correction. According to head of research at CoinShares James Butterfill, the market needs to recalibrate and focus on XRP’s fundamentals. He explains why this shift is needed for creating sustained growth, breaking away from today’s legal vagueness. NeverWishing, a technical analyst on TradingView, predicts XRP could reach $33 by the end of the year, reflecting a highly optimistic view. Conversely, analysts at Token Metrics attribute the recent rally's sustainability to increased adoption of Ripple's solutions, which could drive up demand for XRP.

XRP is estimated to be 52% volatile. This means that in the event of volatility increasing dramatically, XRP price might drop further losses toward $1.96 eventually to $1.62.

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