XRP, one of the largest cryptocurrency assets globally, is showing strong bullish momentum and outperforming much of the market.
After breaking the price structure on the daily chart on January 14, XRP has gained momentum and is projected to reach higher levels soon. With positive technical indicators and growing market interest, XRP’s price is projected to potentially hit $4 or higher if the current trend continues.
On January 11, XRP recorded a breakout, reaching $2.60 on the daily chart. However, the price dipped to $2.33 on January 13 before recovering to over $2.45 within the same trading day. This indicates that strong buying pressure persists, keeping XRP in a long-term upward trend.
According to data from FMCPAY/TradingView, XRP is currently the third-largest cryptocurrency asset (including stablecoins) with a market capitalization of $141 billion.
Growth Trend of the XRP/BTC Pair
The XRP/BTC trading pair is heading toward closing above a long-term resistance level established in May 2021. Over the past four years, this resistance level has been tested three times, most recently in November 2024. This marks a significant milestone, with XRP likely to continue outperforming Bitcoin in the near future.
On the weekly chart, the XRP/BTC pair achieved its highest close since October 2022, indicating a strong recovery and potential growth momentum for XRP. This growth reflects increased interest from both individual and institutional investors.
Analysts’ Predictions
According to trader CRYPTOWZRD, XRP has successfully converted previous resistance into support, paving the way for significant growth. Based on fractal analysis of the weekly chart:
“XRP has flipped previous resistance to support, it is now ready to rally to $4.00 and then $8.00 in the higher time frame.”
Another technical analyst, Titan of Crypto, offered a similar prediction. He emphasized that XRP’s recent price action invalidated a death cross with a golden cross, further strengthening the bullish case. Titan of Crypto set a target price for XRP at $4.32, highlighting that current technical signals indicate sustained market strength.
#XRP Golden Cross: Target $4.32 🎯$XRP might be leading the way for #Bitcoin.
A death cross invalidated by a golden cross and a breakout above the trendline. Momentum is building.#Bullish 🚀 pic.twitter.com/Y4d9bKOvJG
— Titan of Crypto (@Washigorira) January 12, 2025
Breakout from a Triangle Pattern
On January 11, XRP surpassed the $2.50 resistance level, leading to a breakout from a 42-day triangle/pennant pattern. According to technical analysis, the breakout target for this pattern is $3.50, representing a 50% increase from the breakout point of $2.35.
However, to maintain upward momentum, XRP needs to close above critical resistance levels between $2.60 and $2.48, turning this range into new support. If successful, the next key price levels are $2.72 and $2.90 before XRP advances toward higher targets.
The relative strength index (RSI) on the daily chart is currently consolidating above 50, indicating that buying pressure continues to build. This is a clear sign that the market supports XRP’s long-term bullish trend.
XRP is at a crucial stage with the potential for significant growth. Technical signals and consensus among analysts suggest that XRP reaching $4 is entirely feasible in the near future. However, the cryptocurrency market is inherently risky, so investors should remain cautious and closely monitor price developments. In the long term, if XRP continues its upward momentum and surpasses critical resistance levels, it will not only solidify its position as one of the leading assets but also open up greater investment opportunities for the cryptocurrency community. This breakout could become a key driver, reshaping the global cryptocurrency market landscape.
Ethereum: Why Is ETH Price Down Today?
Ethereum (ETH), one of the largest cryptocurrency assets in the market, experienced a significant price decline today after losing its weekly support at the $3,200 level.
This event triggered a sharp increase in selling pressure, pushing ETH to its lowest price since November 21, 2024.
ETH’s Bearish Performance
According to the latest data, ETH dropped by as much as 8% on January 14, marking a challenging start to the trading week. Weakness during the early Asian trading session led to a clear downtrend as the price swept liquidity from the previous day’s high, resulting in a sharp drop.
ETH also lost critical support at the $3,200 level, which had previously held for multiple weeks. This loss pushed the price below $3,167.37, significantly impacting market sentiment.
ETH’s decline below $3,200 triggered a major liquidation event, wiping out over $90 million in leveraged positions. Among these, $77 million came from long positions, reflecting a strong shift in the Ethereum futures market towards bearish sentiment.
Open interest (OI) for ETH reached an all-time high of $32 billion on January 7. However, by January 12, this figure had dropped to $28 billion, indicating that traders were closing their long positions early or taking profits from previous short positions.
ETH Becomes “Inflationary” Over the Past 10 Months
In addition to the bearish trend in the futures market, the underlying demand for holding ETH has significantly declined over the past year. Analyst Benjamin Cowen pointed out that Ethereum’s supply has been increasing by 45,000 ETH per month since transitioning to a proof-of-stake (PoS) mechanism. This has brought the total ETH supply within 32,000 of its pre-merge levels.
The shift from proof-of-work (PoW) to PoS was expected to make ETH a deflationary asset due to its token burn mechanism. However, since the start of 2024, the rate of ETH supply growth has outpaced its burn rate. Cowen remarked:
“Demand has been so low that ETH’s supply has been inflationary for about the last 10 months.”
Technical Analysis of ETH Price
From a technical perspective, ETH’s drop to $3,000 falls within a narrow liquidity zone between $3,000 and $3,100. This zone could signal a potential rebound if support at this level holds.
If ETH can stage a bullish reversal from the $3,000 level on the daily chart, it may indicate that buyers are regaining control. However, continued selling pressure could drive ETH further down to $2,800, corresponding to the weekly Fair Value Gap (FVG) visible on technical charts.
Ethereum is currently facing a challenging period as it loses key support levels and market demand wanes. In the short term, ETH needs to hold the $3,000 support level to prevent further declines. Investors should remain cautious and closely monitor technical indicators and global market trends to make informed decisions.
Bitcoin Faces Pressure as Goldman Sachs and BofA Adjust Fed Rate Cut Expectations
Bitcoin (BTC) drops below $93,000 as investment banks reconsider Federal Reserve rate cuts in response to stronger-than-expected U.S. jobs data.
Bitcoin is facing downward pressure as investment banks adjust their forecasts for Federal Reserve (Fed) rate cuts following a stronger-than-expected U.S. jobs report. The leading cryptocurrency dipped below $93,000 during European trading hours on January 13, reflecting a 1.6% drop for the day. The market is now eyeing a potential test of the $92,000 support level, which has acted as a floor since late November.
A broader gauge of the crypto market, saw a more significant decline, with major altcoins like XRP, ADA, and DOGE suffering even steeper losses. Traditional markets also faced setbacks, with futures tied to the S&P 500 dropping by 0.3%, following a 1.5% decline on Friday that pushed the index to its lowest point since early November. The Dollar Index (DXY) rose close to 110, a level not seen since late 2022, bolstered by elevated Treasury yields.
Strong Jobs Report Shakes Market Expectations
The U.S. nonfarm payrolls report for December revealed a significant jobs gain of 256,000, far surpassing the forecast of 160,000. This surge in hiring, coupled with a slight drop in the unemployment rate to 4.1%, led investment banks to revise their expectations for Fed rate cuts. The average hourly earnings grew at a slower pace than anticipated, coming in at 0.3% month-over-month and 3.9% year-over-year.
In response, Goldman Sachs revised its forecast, pushing the next interest rate cut to June 2025, instead of the previously expected March. Goldman now anticipates only two rate cuts in 2025, with another possible reduction in June 2026. This shift signals a less aggressive approach to monetary easing, particularly in light of the still-strong job market.
Goldman’s economic research note explained,
“While the December jobs report was not alarming in terms of inflation, it has lessened the case for aggressive rate cuts to safeguard the labor market.”
Bank of America Forecasts Extended Fed Pause or Potential Rate Hike
Meanwhile, Bank of America (BofA) expressed concerns that the Fed may extend its pause on rate cuts, with risks tilted toward a potential rate hike instead. “We think the cutting cycle is over,” BofA analysts said in a note. “Our base case is an extended hold by the Fed, with risks now skewed toward a rate hike.”
BofA’s shift reflects broader market concerns, with yields on U.S. 10-year Treasury notes surging by 100 basis points since the first rate cut in September 2024. The rise in bond yields indicates that investors are adjusting expectations for future Fed actions.
Fed’s Rate-Cutting Cycle and Bitcoin’s Surge
Bitcoin has seen a remarkable price surge since the Fed began its rate-cutting cycle in September 2024. After the first rate cut on September 18, BTC soared over 50%, reaching record highs above $108,000. However, the recent changes in Fed policy outlook could add pressure on risk assets like Bitcoin.
What’s Next for Bitcoin and the Markets?
As Bitcoin struggles to maintain its recent highs, investors will closely monitor upcoming economic reports. The December Consumer Price Index (CPI) report, scheduled for release on January 15, could provide further insight into the inflationary pressures affecting the Fed’s decision-making. If core inflation remains elevated, the market’s fears of a hawkish Fed stance could increase, weighing on Bitcoin’s price.
With economic indicators pointing toward a potential extension of the Fed’s rate-hike cycle, Bitcoin and other risk assets may face ongoing volatility as market expectations continue to evolve.
Related topic: Fed rate cuts not coming before June 2025, BTC price rally delayed?
