The cryptocurrency market has its eyes on XRP, which is poised to make history with its first yearly close above $2. Despite intense bearish pressure, XRP’s current performance suggests a turning point that could signal a bullish breakout in 2025.
A struggle against the bears
XRP has faced heightened selling pressure since reclaiming the $2.90 price level on 3 December 2024 and briefly claiming the 3rd largest cryptocurrency spot. After hitting this seven-year peak, altcoin dropped nearly 19% within three days and has been consolidating since. Despite these setbacks, crypto analysts remain optimistic about its long-term potential.
Pseudonymous crypto market analyst Dom highlighted the significance of XRP’s $2 price level in a Sunday X post, noting its historical importance: “When you zoom out, you can see $2 is really the only level that matters. 2017 candle closed at $1.99. 2021 candle wicked to $1.99. Two more days to close above $2 to break the ‘cycle cap’ pattern.”
Historically, XRP has struggled to close above $2. During the 2017/2018 bull run, XRP surged by 33,066%, hitting $2.47 in December 2017. However, it closed the year at $1.99. Subsequent years saw XRP collapse and struggle to reclaim the $2 mark, including its peak of $1.96 in April 2021.
The significance of a $2 close
XRP’s recovery of the $2 price level this December, after a seven-year failed attempt, has reignited hope among investors. The current market conditions, including the declaration of XRP as a non-security token and launch of Ripple stablecoin (RLUSD), have created an opportunity for the XRP Ledger (XEPL) native token to close above $2 for the first time. If achieved, this milestone could break the “cycle cap” pattern and pave the way for a new era of growth.
Notable crypto trader Steph emphasized the potential bullish impact of this event earlier this week on X. “This will be XRP’s highest yearly close in its entire history. We’re all gonna be super rich,” he wrote.
However, XRP faces significant hurdles as bears attempt to push it below $2 before the year ends. The altcoin is currently trading at $2.06, down 1.6% in the last 24 hours at the time of writing, testing the lower trendline of a bull flag on the daily timeframe.
Related: Implications as XRP Ledger reduces base reserve from 10 XRP to 1
Bullish signals amid bearish pressure
Amid December’s bearish sentiment, XRP has managed to post a 7.9% monthly gain, forming a bullish green inverted hammer candlestick. This pattern, characterized by a long upper wick, suggests a potential reversal in the ongoing downtrend.
The inverted hammer indicates that buyers attempted to push prices higher, but sellers resisted. However, the close above the open demonstrates growing buyer strength. Analysts believe that if XRP holds above $2 at the end of December 2024, the following candlestick could signal the start of a bullish reversal.
Market outlook for 2025
If XRP successfully closes above $2, it will mark a historic event and also reinforce its bullish trajectory in 2025. Moreover, such a close would serve as a psychological and technical breakthrough, potentially driving investor confidence and market momentum in 2025.
Nonetheless, the battle for $2 continues, with bulls needing to defend this critical level against bearish forces. A failure to hold $2 could invalidate XRP’s push for a historic close, while success could catalyze a significant price surge in the coming months.
Read also: XRP: Bearish indicators warn of potential 25% price decline in early 2025
