Key Insights
- XRP price has been in a correction phase since December.
- Ripple price has shown weakness in the resistance zone.
Ripple (XRP) price has undergone a correction phase after a massive bullish rally. The price has been struggling below the $2.8 mark since December. However, the XRP price has attempted to exceed this resistance zone but failed to continue the trend.
Recently, the momentum was interrupted near this zone which might lead to a bearish trend. The technical chart suggests that the Ripple coin price has grabbed the $2 support level.
XRP Price Action Over the Past Three Months
The price of XRP probably increased from less than $2.00 to $2.70 during the last three months, from November 20, 2024, to February 20, 2025.
With daily jumps like today’s 7% increase, this growth is consistent with a “strong bullish recovery” identified in recent analysis.
This upward trend is further highlighted by the weekly increase of 9.59% and the year-to-date gain of 29.95%.
Recent data suggests that if bulls maintain control and are bolstered by strong trading volume and favorable technicals, the XRP price may be $3.00 and even reach $3.50. However, if bears gain control, the price may fall to $2.50 or even $2.00.
One important factor might be the SEC’s continuous review of XRP ETF approvals, which has not yet resulted in a decision as of February 20, 2025. A positive decision could cause prices to rise above the all-time high of $3.84 set in 2018.
Given the ongoing legal disputes surrounding its classification, it is surprising that the SEC’s possible approval of an ETF could greatly increase XRP’s value. However, no decision has been made, which has left markets on edge.
Could XRP Price Soar After Major Correction?
When writing, Ripple crypto was trading at $2.66 which has slightly dropped in the past 24 hours. The market capitalization was $154.38 Billion and the 24-hour trading volume was around $3.85 Billion.
Based on the technical chart, the price has been consolidating in a parallel channel. After a massive rally, the price has experienced a major correction phase.
If the price triggers a breakout from the resistance zone of the $2.8 mark, it could be a bullish signal.
Once the price surpasses the $3 mark, strong bullish momentum can be anticipated. It might replicate the previous rally after the successful breakout.
Conversely, if the XRP USD price faces resistance from the $2.8 mark, it could melt to the support level of $2.00.
Suppose the Ripple price dives below the $2 level, buyers might panic. Here, most traders and investors might prefer to book profit which may result in a bearish rally.
XRP Price Prediction Amid Correction Phase
XRP has demonstrated a notable recovery in recent months, bouncing back from below $2.00 to approximately $2.66.
Despite this progress, the price remains constrained by the $2.8 resistance zone, which it has struggled to breach.
The upcoming potential developments regarding XRP ETF approvals by the SEC could play a critical role in determining its price trajectory.
If bullish momentum continues and XRP successfully breaks above the $3 mark, further gains could be expected.
Conversely, any failure to maintain support around $2.00 could trigger a bearish trend, leading to increased selling pressure among traders. Thus, the short-term outlook for XRP hinges on both market dynamics and regulatory clarity.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
