Cointelegraph by Yashu Gola
2025-01-17 06:44:00
cointelegraph.com
XRP (XRP) has surged by over 350% versus Bitcoin (BTC) since Donald Trump’s US presidential election win in November.
The XRP/BTC pair shows striking similarities to the 2017 bull market, suggesting a potential explosive rally in the coming months if this fractal plays out once again.
Additionally, technical indicators and emerging fundamentals hint at the possibility of the pair doubling in value by March.
XRP price up 32% vs Bitcoin in January
XRP/BTC is up nearly 32% in January 2025, breaking above key resistance levels and entering the overbought zone, based on the Relative Strength Index (RSI). The last time XRP/BTC witnessed such RSI levels was in early 2017, right before a 2,500% rally.
RSI crossing above 70 typically precedes a period of market consolidation or correction. However, in certain cases, strong market fundamentals can push prices even higher.
In 2017, the RSI climbed above the overbought threshold of 70, but it didn’t immediately result in a consolidation or correction. The prevailing euphoria led by the initial coin offering (ICO) boom helped XRP sustain its climb of 2,500% versus Bitcoin.
XRP’s fundamentals in 2025 could repeat 2017
In 2025, fundamentals are slightly different but remain in favor of XRP.
For instance, the potential resolution to the ongoing SEC vs. Ripple lawsuit under the Trump administration could pave the way for the approval and launch of XRP exchange-traded funds (ETF) in the US.
Related: XRP price to $10–$50 ‘plausible’ if spot ETF approved, ChatGPT says
Analysts at JPMorgan predict these ETFs could bring in $4 billion to $8 billion in capital inflows. Meanwhile, Ripple announced the launch of RLUSD, a stablecoin aimed at enhancing liquidity within the XRPL ecosystem, which adds utility to XRP.
These strong fundamentals could pave the way for XRP/BTC to continue rallying in the coming weeks even if it becomes “overbought.”
XRP price technicals hint at 100% gains
In this bullish scenario, the next upside target will likely be its 0.236 Fibonacci retracement line, aligning with the 6,471 satoshi level (1 satoshi = 0.00000001 BTC). That is about 100% up when measured from current price levels.
XRP/BTC has also broken out of its prevailing, 8-year symmetrical triangle pattern to the upside, reinforcing the bullish outlook presented by its 2017 fractal and accompanying fundamentals.
Conversely, XRP’s inability to cross above its prevailing resistance area, defined by the red-colored 1,950-3,550 satoshi range in the chart above, could invalidate the bullish setup discussed above.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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