As the ‘Trump Effect’ Bolsters Ripple Sentiment, XRP Might Rise 40%.

XRP Eyes 40% Upsurge as Bullish Technical Pattern and Regulatory Shifts Align

XRP, the native asset of the XRP Ledger, is positioning itself for a potential 40% rally, buoyed by both favorable technical analysis and shifting regulatory dynamics in the U.S. After reaching a peak near $2.9 in early December, XRP has recently entered a “descending triangle” pattern on its price chart. This pattern, characterized by a flat lower support line and a declining upper trendline, suggests the possibility of an impending breakout.

In technical analysis, descending triangles are typically seen as continuation patterns. While a breakdown below the support level would invalidate the bullish case, past data indicates that breakouts to the upside are more common, often resulting in average gains of 16% to 47%. If XRP breaks above the declining upper trendline, it could see a move of 40% or more, continuing its strong uptrend since early November lows.

Adding to the positive outlook for XRP is its robust social sentiment. A recent report from Santiment revealed that social media discussions surrounding XRP are surging, surpassing those of Bitcoin (BTC) and Ethereum (ETH). The growing optimism is reflected in XRP’s stellar performance since the U.S. presidential election, where the token has skyrocketed by more than 300%, outperforming other major cryptocurrencies.

This surge in XRP’s price is partly attributed to expectations of a more favorable regulatory environment for digital assets under the incoming Trump administration. Ripple Labs, the company behind XRP, stands to benefit from a regulatory shift that may ease the path for U.S.-based crypto companies. With the anticipated exit of SEC Chairman Gary Gensler, who has been seen as an impediment to crypto regulation, Ripple CEO Brad Garlinghouse has expressed confidence that the new administration will clear up years of regulatory uncertainty, unlocking new business opportunities for Ripple.

Ripple has already seen a boost in its domestic business dealings, signing more agreements in the final six weeks of 2024 than in the previous six months, a clear sign of the “Trump effect” taking hold. Ripple President Monica Long has also hinted at the potential approval of an XRP exchange-traded fund (ETF) this year, further adding to the bullish narrative surrounding the token.

With the technical setup pointing to a breakout, growing social media buzz, and a shift towards favorable regulations, XRP seems poised for a strong move upward in the near future. If the token manages to break through its upper resistance level, a 40% rally could be on the horizon, continuing its impressive gains since late 2024.

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