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XRP continues to struggle around the $2 price as 2024 winds down, but analysts believe the token is one of the most promising crypto assets for 2025.
Last night, XRP dipped below the $2 mark for the third time in December, testing lows of $1.995 on Binance before bouncing back.
Although XRP’s ongoing price action has been discouraging, analysts like Ali Martinez believe its chart patterns are among the most bullish in crypto. He has cited numerous technical formations to support this view.
XRP Bollinger Bands Squeezing
In a recent commentary, Martinez pointed out that the Bollinger Bands are tightening on XRP’s daily chart. He emphasized that this formation signals an imminent significant price movement.
Notably, other market analysts have also observed this BB squeeze on XRP’s chart across different timeframes. They agree the setup is promising and could propel XRP to a new all-time high.
XRP Forming Compelling Pattern for $11 Rally
Meanwhile, in a follow-up update, Martinez presented another chart that paints a compelling picture of a potential surge to $11.
The chart shows that after a powerful rally in November that catapulted XRP to new heights, the price entered a period of consolidation. Specifically, it depicted XRP trading within a tightening range, where buyers and sellers engage in a tug-of-war, forming a bullish pennant.
This consolidation phase, marked by diminishing volatility, has historically preceded explosive moves. When observing XRP on the 4-hour chart, this setup repeated at least three times between November and the first week of December. Each instance resulted in a significant breakout for XRP.
Martinez had pointed out this formation in a separate update two weeks ago, suggesting a short-term target of $4 upon a breakout.
Now, XRP is hovering around $2.04, locked within narrowing trendlines as the market awaits a decisive move. Martinez expects a 440% rally to $11 in XRP’s next leg up.
With the ongoing bearish performance, market commentators are urging XRP holders to remain patient.
Pundits like Bobby A assured investors that the asset has not broken out of a seven-year downtrend only to stop just short of reaching a new peak. He stressed that the ongoing pattern is temporary and consistent with historical moves.
Whales Positioning for XRP’s Next Move
Notably, while retail investors are increasingly frustrated with the continuous downturn in XRP, whales continue to load up on the asset, positioning for its next move. For instance, on December 25, XRP whale holdings increased by 60 million XRP.