XRP, the payments-focused cryptocurrency, is poised for a potential 40% price increase as technical analysis and improving market sentiment point to bullish momentum. The so-called "Trump effect," coupled with favorable regulatory shifts in the U.S., has fueled optimism among traders.Bullish Technical Patterns Signal Major GainsDescending Triangle Breakout in PlaySince peaking at $2.9 in December, XRP has carved out a "descending triangle" pattern. This technical formation features a horizontal support line, indicating consistent demand near $2.00, and a declining upper trendline, representing weakening bounces.According to CoinDesk analyst Omkar Godbole, descending triangles typically resolve with either a downside break or a bullish breakout, with bullish patterns producing average gains of 47%. If XRP breaks above its declining upper trendline, prices could surge 40% or more, resuming the bullish trend that started from November's lows near $0.50.“All bets are off if prices diverge from the pattern and move below the horizontal support line near $2.00,” Godbole added.Social Sentiment and the Trump EffectOptimism Outpaces Bitcoin and EthereumSocial sentiment for XRP remains highly positive. Data from Santiment shows that XRP enjoys higher optimism than Bitcoin (BTC) or Ethereum (ETH), with increased mentions across social media platforms.Policy Expectations Under TrumpXRP’s price has surged over 300% since November, driven by expectations of crypto-friendly policies under President-elect Donald Trump. Ripple Labs, the firm behind XRP, anticipates a more favorable regulatory landscape, particularly following the departure of SEC Chair Gary Gensler, who was viewed as crypto-skeptical.Ripple CEO Brad Garlinghouse expressed optimism, noting that the incoming administration ends "years of regulatory limbo" and has already opened new business opportunities. Ripple Labs has signed more U.S. deals in the last six weeks of 2024 than in the previous six months.Ripple President Monica Long added to the bullish outlook, hinting that an XRP exchange-traded fund (ETF) could become a reality soon, aligning with expectations of a pro-crypto regulatory shift.Key Levels to Watch for XRPTo confirm the bullish breakout, XRP must break above the descending triangle's upper trendline. If prices fall below the $2.00 support, the bullish thesis would be invalidated.With technical patterns and social sentiment aligning, XRP is positioned for a potential 40% move higher, further fueled by the "Trump effect" and shifting U.S. regulatory tides, according to CoinDesk.
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