After XRP reclaimed the $3 spot, a cryptocurrency trading analyst is projecting that the asset has the potential to rally to a new high of $8.
XRP will likely hit this level before the current market cycle tops, with the digital currency breaking through critical resistance levels as it aligns with an ascending channel, according to MikybullCrypto in an X post on January 22.
The price is testing a pivotal resistance zone near $3.20, which could determine XRP’s next trajectory. A breakout above this threshold would likely pave the way for a climb toward the upper bounds of its long-term ascending channel, which aligns with the $8 target.
“XRP might rip through to $8 before a cycle top given the current bullish fundamentals,” the expert said.
XRP price analysis chart. Source: TradingView/MikybullCrypto
Historically, this channel has guided XRP’s price action, and a move to its upper limit could mark a major milestone for the asset.
Technical indicators for XRP
On the technical side, XRP is holding well above its 50-month and 200-month moving averages (MA), which continue to trend upward, reflecting sustained bullish sentiment.
Additionally, the monthly Relative Strength Index (RSI) has surged above 85, indicating strong buying interest and overbought conditions. While this could suggest the possibility of short-term consolidation, the underlying momentum remains robust.
On the other hand, pseudonymous analyst Dark Defender, through an X post on January 20, noted that investors should anticipate a sustained breakout after XRP reclaimed the $3 zone.
XRP price analysis chart. Source: TradingView
The analyst also observed that an ascending trend and Fibonacci retracement levels hint at strong bullish momentum.
Key levels support XRP’s price, including the 38.2% retracement at $2.94 and the 50% level at $2.82, providing a solid foundation for further upward movement.
The expert expects that once the $3.24 level is cleared, XRP could target new highs, potentially reaching the 261.8% Fibonacci extension at $5.85 in the medium term.
Overall, after exiting the consolidation below $1, market sentiment has shifted positively, with XRP poised to rise after being weighed down partly due to the case between Ripple and the Securities Exchange Commission (SEC).
This potential momentum has been supported by an uptick in whale transactions, which have historically signaled possible price breakouts. Some analysts are even projecting an ambitious target of $100.
Notably, with the new crypto-friendly Donald Trump administration officially taking office, the case is expected to be resolved under the new SEC leadership.
There is speculation that the prolonged legal battle could result in a settlement favorable to the blockchain company.
XRP price analysis
As of press time, XRP was trading at $3.17, a minor price drop of about 0.13%. Over the past seven days, the token has predominantly been in the green, up almost 9%.
XRP seven-day price chart. Source: Finbold
Following the recent price movement, XRP has the potential to rally further. However, the $3 support level is critical to monitor, as it could determine the likelihood of a sustained breakout.
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