Ripple Sentiment Soars, Potentially Pushing XRP Up by 40% Amid the ‘Trump Effect’.

XRP’s Path to 40% Gain: Bullish Triangle Pattern and Optimistic Regulatory Shifts

XRP, the leading cryptocurrency of the XRP Ledger, is gaining attention due to its formation of a “descending triangle” chart pattern, which could signal a potential 40% price surge. This pattern consists of a lower horizontal support line, denoting consistent demand at a certain price level, and a declining upper trendline that shows weakening price bounces.

In technical analysis, descending triangles are typically seen as continuation patterns, although they are more commonly followed by bullish breakouts rather than downward movements. According to technical analysts, such bullish breakouts from descending triangles usually lead to average gains of 47%, which in XRP’s case could translate to a 40% rise if it surpasses the declining upper trendline, resuming the upward momentum seen in November when the token traded around 50 cents.

However, if XRP falls below the support line at around $2.00, the bullish outlook may be invalidated, and a more bearish trend could follow.

In addition to the technical pattern, social sentiment surrounding XRP is also increasingly positive. A recent Santiment report revealed a surge in social media activity and market commentary about XRP, surpassing that of major cryptos like Bitcoin (BTC) and Ethereum (ETH). This heightened interest aligns with the significant price surge XRP has experienced, which has exceeded 300% since the November U.S. presidential election, largely fueled by expectations of a more favorable regulatory environment under President-elect Donald Trump.

The anticipated regulatory shift is expected to benefit Ripple Labs, the company behind XRP, especially with the likely departure of SEC Chairman Gary Gensler, who has been known for his tough stance on cryptocurrencies. Ripple CEO Brad Garlinghouse has suggested that the new administration would end the regulatory uncertainty that has plagued the industry for years, paving the way for more business opportunities for Ripple in the U.S.

Ripple’s recent performance also reflects this optimism, with the company reporting more new U.S. deals in the last six weeks of 2024 than in the previous six months. The so-called “Trump effect” appears to be directly boosting Ripple’s business in the U.S.

In further developments, Ripple President Monica Long recently indicated that the approval of an XRP exchange-traded fund (ETF) could be on the horizon, which would further fuel positive sentiment around XRP.

With a strong technical setup, positive social sentiment, and a shifting regulatory landscape, XRP appears poised for continued upward momentum, potentially leading to a significant 40% price rally in the near future.