XRP

XRP Poised for Explosive Rally, Echoing 2017 Bull Market Patterns

XRP, the cryptocurrency associated with Ripple, has exhibited a remarkable performance against Bitcoin (BTC) in early 2025. Recent price action suggests parallels with XRP’s explosive rally in 2017, raising the possibility of a significant surge in the coming months.

XRP Surges by 350% Since Trump’s Election Win

Since Donald Trump’s US presidential election victory in November 2024, XRP has surged over 350% against Bitcoin. The XRP/BTC trading pair now shows striking similarities to the bull market of 2017, when XRP experienced a historic 2,500% rally after breaking an eight-year downtrend. If this fractal pattern repeats, XRP could see a similar explosive rise by March 2025.

32% Gain in January Sparks Optimism

In January 2025, XRP/BTC has climbed by 32%, breaking key resistance levels and entering the overbought zone based on its Relative Strength Index (RSI). Historically, RSI readings above 70 can signal a potential consolidation or correction. However, in unique bullish scenarios, such as in 2017, strong fundamentals can sustain price momentum despite high RSI levels.

Source: Polymarket
Source: Polymarket

During the 2017 bull run, XRP maintained its climb even after entering the overbought zone, driven by market euphoria during the initial coin offering (ICO) boom.

2025 Fundamentals Mirror 2017’s Strength

XRP’s fundamentals in 2025 present a different but equally compelling bullish narrative. The ongoing SEC vs. Ripple lawsuit, now under review during the Trump administration, could result in regulatory clarity. A favourable resolution might pave the way for the approval and launch of XRP exchange-traded funds (ETFs) in the US.

According to analysts at JPMorgan, these ETFs could attract capital inflows ranging from $4 billion to $8 billion. Additionally, Ripple has launched RLUSD, a stablecoin aimed at improving liquidity within the XRP Ledger (XRPL) ecosystem, enhancing the utility of XRP.

These developments could sustain XRP’s bullish momentum, potentially replicating the conditions that fuelled its massive rally in 2017.

Technical Indicators Suggest a 100% Rally

From a technical perspective, XRP/BTC appears primed for further gains. The pair has broken out of an eight-year symmetrical triangle pattern to the upside, a signal often associated with the start of strong bullish trends.

XRP/BTC three-week price performance chart. Source: TradingView
XRP/BTC three-week price performance chart. Source: TradingView

The next target for XRP/BTC is the 0.236 Fibonacci retracement level, aligning with 6,471 satoshis. This would represent a 100% increase from current price levels.

However, XRP faces a significant resistance zone between 1,950 and 3,550 satoshis. Failure to break through this range could invalidate the bullish outlook and result in a period of consolidation.

Outlook Remains Bullish

XRP’s performance in early 2025 highlights its potential for further gains, with strong technical patterns and emerging fundamentals offering substantial support. While risks remain, the cryptocurrency’s rally against Bitcoin could be just beginning, echoing the dramatic price action of 2017.

Investors and analysts will closely watch whether XRP can sustain its momentum and achieve the anticipated 100% rally in the coming months.

0
Based on 0 ratings

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *