XRP’s Price Registers Largest Daily Return Since Dec. 2
XRP Price Sees a Significant Rise on Jan. 1, 2025
On January 1, 2025, XRP’s price registered its largest daily return since December 2, 2024, with an increase of 11.92%. This significant rise comes as Ripple looks forward to Donald Trump’s inauguration on January 20.
Breaking Key Resistance at $2.30
Meanwhile, the shorter time frames saw the XRP/USD trading pair break above key resistance at $2.30 after testing $2 as support over the past two weeks.
XRP/USD 4-Hour Chart
Source: Cointelegraph/TradingView
Ripple Moves 500M XRP from Escrow Account
Ripple’s price is up today following a significant transfer of 500 million XRP tokens from its escrow account to another Ripple-owned wallet. This transaction has caught the market’s attention, with an interesting note attached to it: "January 20th is around the corner. Donald Trump will be in the WH, and we are going to make crypto great again!"
This Note Likely Acted as a Catalyst for XRP’s Rise
This note likely acted as a catalyst for XRP’s rise today, given that XRP has been one of the top performers since Donald Trump’s election win in November 2024.
XRP Futures Market Flips Bullish on Jan. 1, 2025
The XRP futures market flipped bullish on the first day of 2025, with a significant increase in open interest (OI). After a 54% drop in OI in December, the crypto asset’s OI jumped by 25% over the past two days.
Data from CoinGlass Indicates Increase in Open Interest
Data from CoinGlass indicated that the open interest increased from $1.86 billion on December 31 to $2.37 billion on January 2, 2025. These new positions opened over the past two days are possibly long, contributing to XRP’s positive rise.
XRP Futures Open Interest
Source: CoinGlass
Short Liquidations Reach a New High Since Dec. 20
Short liquidations have been at their highest since December 20, with over $15 million wiped out over the past 24 hours. XRP short liquidations were also the third largest liquidated crypto asset, fueling XRP’s bullish breakout.
XRP Exchange Reserve on Binance Decreases
Additionally, after a flash rise in the XRP exchange reserve at the beginning of December, the supply on Binance decreased from 2.97 billion to 2.90 billion during the final week. This indicates that spot buyers possibly bought the dip as XRP price corrected from $2.25 to $2.00.
XRP Exchange Reserve on Binance
Source: CryptoQuant
Key Resistance Range to Watch for XRP
On longer timeframes, XRP maintains a bullish market structure on the daily and weekly charts, but price fluctuations can be expected in the medium term. As shown below, XRP oscillates within the trendlines of a symmetrical triangle pattern without a confirmed breakout.
XRP 4-Hour Chart
Source: Cointelegraph/TradingView
A key resistance range between $2.50 and $2.60 may cap XRP’s rise. This particular level has acted as a key reversal point after XRP reached a yearly high of $2.90 in 2024, with XRP failing to convert it into a support level.
Current Resistance Range
Currently, this range is confluent with the triangle’s descending trendline, which the XRP/USD pair might fail to break again. A daily candle close of $2.60 would confirm a bullish breakout above this key trendline, leading to new yearly highs above $3, or a 26% gain.
Key Levels to Watch for XRP
Conversely, a drop to $2.10, where a daily order block is present, may hinder immediate bullish price action. A daily close above $2.30 will retain investors’ confidence, but a close below $2.30 might usher in another period of profit-taking.
Conclusion
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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