XRP Poised for 40% Surge Amid Technical Breakout and Regulatory Optimism

XRP, the native token of the XRP Ledger, is showing signs of significant upward potential, fueled by both technical patterns and a favorable regulatory landscape. The cryptocurrency has recently formed a “descending triangle” chart pattern, a formation that often suggests a breakout is imminent. This pattern consists of a consistent support level and a declining upper trendline, signaling a potential bullish move.

Descending triangles are traditionally considered continuation patterns, with bullish breakouts being the more reliable outcome. Historically, such breakouts have resulted in average gains ranging from 16% to 47%. If XRP manages to break through the upper trendline, it could experience a surge of 40% or more, pushing it past its early December high near $2.9. The key support level for the token is around $2.00, and if XRP falls below this level, the bullish outlook could be invalidated.

In addition to the technical indicators, the sentiment surrounding XRP is increasingly positive. A recent report from sentiment analysis firm Santiment revealed that social media activity and public commentary around XRP are currently higher than that of Bitcoin (BTC) and Ethereum (ETH). This surge in interest coincides with the significant price gains XRP has experienced since the U.S. presidential election, where it has seen a 300% increase, far outpacing other major cryptocurrencies.

The optimism surrounding XRP is partly due to the expectation of a more crypto-friendly regulatory environment under President-elect Donald Trump. Ripple Labs, the company behind XRP, stands to benefit from a potential shift in U.S. policy, especially with the anticipated departure of SEC Chairman Gary Gensler, who has been known for his strict stance on digital assets. Ripple CEO Brad Garlinghouse has expressed confidence that the new administration will provide clearer regulatory guidelines, which could open the door for new business opportunities for the company.

Ripple’s recent business performance reflects this growing optimism. The company has reported signing more U.S. deals in the last six weeks of 2024 than in the previous six months, demonstrating a clear “Trump effect” on its operations.

Furthermore, Ripple President Monica Long recently hinted at the possibility of an XRP exchange-traded fund (ETF) being approved in 2025, which would provide another boost to the token’s price.

With a promising technical setup, increased social sentiment, and a shifting regulatory environment, XRP is in a strong position to see significant gains in the near future, potentially reaching a 40% price increase if it breaks through key resistance levels.