Bears Hold Back XRP's Rally to $3.5
2025-01-23
Category: None

XRP's price rally is facing resistance as bears limit its climb toward the $3.5 mark. Despite bullish speculation fueled by Ripple's potential ties to the Trump administration, the token’s movement has been muted, highlighting the limited influence of external factors.

Adding to the challenge is the rise of "Celebrity Coins" like TRUMP and MELANIA, which have absorbed over half of the total trading volume. This diversion of liquidity has restrained XRP from gathering the strength needed for a significant breakout.

Still, market sentiment toward established tokens like XRP, ADA, DOGE, and LINK remains bullish, with analysts pointing to unexplored bullish divergences in these assets. XRP’s market capitalization is advancing toward the $200 billion milestone, increasing the likelihood of a new all-time high before month’s end.

In the short term, XRP’s price action shows signs of contraction, with bearish dominance keeping it within a descending, expanding channel. The stochastic RSI is struggling to rise above average levels, keeping Bollinger bands in a tight range. Until the price approaches the channel apex, a breakout seems unlikely.

However, when a breakout does occur, XRP could surge toward the upper Bollinger band. For this move to materialize, a significant influx of buying liquidity is required. Current trading volumes, which have been redirected to new tokens, are expected to return to established tokens like XRP as interest in "Celebrity Coins" fades.

With over 90% of traders maintaining a bullish outlook on XRP, the token could soon trigger a strong upward move, potentially marking fresh highs in the near term.