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- Analysts highlight a potential breakout for XRP from the bullish pennant resistance, initially targeting $2.68, with a successful push potentially driving the price above $3.
- Stellar’s XLM has bounced from a falling wedge pattern, signaling a possible bullish breakout.
The crypto market, which had a strong rally in mid-Q4 2024, failed to sustain its momentum toward the end of the year. This led to a consolidation phase for most cryptocurrencies, including Ripple (XRP) and Stellar (XLM), which saw major pullbacks to their monthly lows. However, renewed buying interest has emerged, with both XRP and XLM showing strength as they challenge key resistance levels.
XRP Price Eyes $3 Amid Major Recovery Attempts
Ripple’s XRP has been consolidating for over a month. Moreover, all attempts to break out of its tight trading range have failed. Recent price movements, however, signal a possible rebound. Nonetheless, concerns of a possible bull trap persist due to vigilant bearish activity.
Looking at the daily chart, XRP price seems ready to break above the bullish pennant-patterned resistance. Indicators such as MACD are showing lesser selling pressures, and a bullish crossover is likely near at hand. The Ichimoku cloud was still in a bullish zone and further positive crossover signals could happen.
The current price activity suggests XRP could break out of the pennant’s resistance in the coming hours, targeting immediate resistance at $2.68. Failure to achieve this breakout may result in continued consolidation above the $2 mark until the price reaches the apex of the pennant. A successful breakout could drive XRP beyond $3, provided buying pressure intensifies, reported CNF.
Analysts expect a successful breakout in the short term as the SEC lawsuit against Ripple could end for good after Donald Trump takes office on January 20, 2025. On the same day, there is a possibility of Paul Atkins taking over the SEC after Gary Gensler’s exit, as Trump announced earlier. This could lead to a change in the course of the agency’s legal actions taken against Ripple. For now, January 15 serves as a crucial deadline, which the SEC is likely to miss owing to the impending change in administration.
Stellar (XLM) Price Targets 30% Surge
Stellar’s XLM token had been trading in a horizontal consolidation for months before recently facing rejection at its yearly highs. Since then, the token has formed a falling wedge pattern. A recent bounce from this pattern suggests that a breakout may be underway, generating bullish momentum for the crypto.
Moreover, the XLM price has increased with considerable volumes, meaning the interest in trading has also been on the rise. On-Balance Volume (OBV) is bullish-divergent, which is in favor of an upward move. Still, Stellar’s Supertrend is bearish, which can trigger a slight correction before the next leg up.
Current projections show that XLM may briefly drop below $0.40, and this may attract more trading volume. Thereafter, XLM’s price may rise as a result of the increased activity, surpassing the 2024 highs and positioning XLM to set a new ATH above $1, reported CNF. Continued bullish momentum may also push the token toward the $0.50 mark as traders capitalize on its upward movement.
