XRP Price Could Surge 40% Amid ‘Trump Effect’ and Bullish Chart Signal

Will XRP See a 40% Price Increase? Key Indicators and Trends

XRP, the payments-focused cryptocurrency, is gaining traction as analysts predict a potential 40% price increase. This anticipation stems from promising technical analysis and a shift in market sentiment, suggesting a bullish momentum. The so-called "Trump effect," alongside favorable regulatory changes in the United States, has ignited optimism among traders.

Bullish Technical Patterns Signal Major Gains

One of the most notable consolidations is the descending triangle pattern that XRP has traced since hitting a peak of $2.9 in December. This technical formation reveals a horizontal support line around $2.00, which signifies consistent demand, while a declining upper trendline indicates weakening price bounces.

According to CoinDesk analyst Omkar Godbole, descending triangles typically resolve with either a bearish breakdown or a bullish breakout. Historical data shows that bullish outcomes often lead to average gains of 47%. If XRP breaks through this declining upper trendline, we could witness a price surge of 40% or more. This would mark a resurgence in the bullish trend that began from November’s lows of approximately $0.50.

However, Godbole warns that all bets are off if prices diverge from this pattern and dip below the crucial horizontal support line near $2.00.

Social Sentiment and the Trump Effect

The social sentiment surrounding XRP is currently vibrant, with data from Santiment indicating that the optimistic sentiments for XRP outweigh those for both Bitcoin (BTC) and Ethereum (ETH). Increased mentions and discussions on social media platforms reinforce this positive outlook.

Policy Expectations Under Trump

XRP's price has experienced remarkable growth, soaring over 300% since November, primarily due to the expectation of more crypto-friendly policies under new President Donald Trump. Ripple Labs, the company behind XRP, is optimistic about a more favorable regulatory landscape as the former SEC Chair Gary Gensler—who was generally viewed as skeptic—has departed.

Ripple CEO Brad Garlinghouse expressed positivity towards these developments, highlighting its potential to end "years of regulatory limbo" and open up new business opportunities. Notably, Ripple has secured more deals in the last six weeks of 2024 than in the prior six months, showcasing a new wave of momentum.

Furthermore, Ripple President Monica Long hinted that an XRP exchange-traded fund (ETF) may soon become a reality, aligning perfectly with the anticipated pro-crypto regulatory transitions.

Key Levels to Watch for XRP

To validate the bullish breakout, XRP must successfully break above the descending triangle’s upper trendline. Conversely, if prices fall beneath the critical $2.00 support, the bullish theory would face significant challenges.

With accompanying technical patterns and positive social sentiment, XRP is well-positioned for a considerable 40% upward move, spurred by the "Trump effect" and evolving U.S. regulatory tides, as suggested by CoinDesk.

For more insights into cryptocurrency trends, visit our resources on Market Analysis and Crypto Regulations for comprehensive information.