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- Analysts point to XRP’s potential breakout from the bullish flag resistance initially targeted at $2.68, with a successful move potentially pushing the price above $3.
- Stellar’s XLM bounced off a falling wedge pattern, signaling a possible bullish breakout.
The crypto market, which had a strong rally in the middle of the fourth quarter of 2024, failed to maintain its momentum until 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 while challenging key resistance levels.
XRP price around $3 amid major recovery attempts
Ripple’s XRP has been consolidating for over a month. Moreover, all attempts to break out of its narrow trading range have failed. Recent price movements, however, signal a possible recovery. Despite this, concerns about a possible bull trap remain due to the vigilant bear activity.
Looking at the daily chart, XRP price seems poised to break through the resistance with a bullish flag pattern. Indicators such as the MACD are showing less selling pressure, and a bullish crossover is likely close. The Ichimoku cloud was still in the bullish zone and further positive cross signals could occur.
Current price activity suggests that XRP may break through the flag resistance in the coming hours, targeting the current resistance at $2.68. Failure to achieve this breakout may result in continued consolidation above the $2 mark until the price reaches the top of the flag. A successful breakout could push XRP above $3, provided buying pressure intensifies, CNF reported.
Analysts expect a successful breakthrough in the short term because the SEC’s lawsuit against Ripple could end forever after Donald Trump takes office on January 20, 2025. On the same day, there is a possibility that Paul Atkins will take over the SEC after the departure of Gary Gensler, as Trump previously announced. This could lead to a change in the agency’s legal action against Ripple. For now, January 15 is the key deadline, which the SEC will likely miss due to the upcoming change in administration.
Stellar (XLM) price target increase is 30%.
Stellar’s XLM token has been trading in a horizontal consolidation for months before recently facing a bounce 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, creating bullish momentum for the cryptocurrency.
Moreover, the price of XLM has increased with significant volumes, which means that interest in trading is also on the rise. On-Balance Volume (OBV) is bullish divergent, which favors an upward movement. However, Stellar’s Supertrend is bearish, which may trigger a slight correction before the next uptrend.
Current projections indicate that XLM could briefly fall below $0.40, and this could attract more trading volume. After that, the price of XLM could rise as a result of increased activity, surpassing the 2024 highs and positioning XLM to set a new ATH above $1, CNF reported. A continuation of the bullish momentum could also push the token towards the $0.50 mark as traders take advantage of its upward movement.
