Factors Required for XRP to Reach $4 by February 2025

XRP’s price has dropped over 3% in the last 24 hours. This decline shows signs of slowing momentum. The Relative Strength Index (RSI) has fallen below 40, indicating weakening strength. Additionally, whale activity remains stagnant, suggesting that large holders have not started accumulating XRP.

Potential Death Cross
The Exponential Moving Average (EMA) lines are nearing a potential death cross. This pattern could lead to further declines if selling pressure increases. However, if XRP can break through key resistance levels, it may set the stage for a rally towards $4 in February.

XRP RSI: Neutral Below 40
Currently, XRP’s RSI is at 39.5. It has remained in a neutral range since January 28, when it reached 58. The RSI measures the strength of price movements on a scale from 0 to 100. Readings above 70 indicate overbought conditions, while levels below 30 suggest oversold conditions. An RSI between 40 and 60 shows a price stagnation, where neither buyers nor sellers dominate.

Weak Momentum and Future Outlook
As XRP’s RSI approaches the oversold territory, it shows weak momentum. Without increased buying pressure, further declines may occur. For XRP to approach $4 in the coming weeks, the RSI needs to rise above 50. This could happen due to positive developments regarding ETFs or a withdrawal of the SEC lawsuit.

Whale Activity Stagnation
The number of XRP whale addresses, holding between 1 million and 10 million XRP, has remained stable since January 21. The count has fluctuated between 2,095 and 2,082, with the latest figure at 2,083. Tracking these large holders is crucial, as whale accumulation often precedes significant price movements.

Importance of Whale Accumulation
An increase in whale addresses indicates growing confidence among large investors. Conversely, a decrease may reflect waning belief or profit-taking. For XRP to regain $4 in February, whale accumulation needs to continue its upward trend, similar to early January. During that period, the whale count rose from 1,981 on January 4 to 2,080 on January 16. XRP’s price surged from $2.41 to $3.40, marking a 41% increase.

Price Prediction: Is $4 Possible?
XRP’s EMA lines suggest a potential death cross, signaling a bearish momentum shift. If this trend occurs, XRP’s price could test support at $2.82. If this level fails, further declines could lead to $2.60 and $2.32.

In a more extreme scenario, if selling pressure remains strong, XRP could drop to its lowest level of $1.99 in 2025.

Bullish Scenario
If XRP can test and break the resistance at $3.03, it may regain bullish momentum. This could lead to movements towards $3.28 and $3.40. A breakout above these levels could pave the way for XRP to test $4, representing a potential increase of 33.3% from current levels.