After a sharp drop to $2.65, XRP shows signs of recovery with technical indicators suggesting a potential rally to $12. Ripple’s market momentum is bolstered by bullish patterns and key developments.

XRP’s recent crash and doji candlestick formation

Technical analysis suggests a reversal is on the horizon
XRP fell over 21% to $2.65, marking its lowest point in 12 days. However, the formation of a long-legged doji candlestick—a pattern signaling potential reversals—at the $3 level could indicate a price rebound. A close above $3 at Monday’s trading session would strengthen this signal.

Bullish patterns support further upside

Break-and-retest and bullish pennant patterns emerge
XRP’s recent move to $2.6580 confirms a break-and-retest pattern, a classic continuation signal in trading. Additionally, a bullish pennant pattern observed in XRP charts suggests a possible climb to $12.15, as the measured distance from the pennant’s upper side aligns with the November-December flag pole.

Fundamental catalysts for XRP’s growth

Regulatory wins and increasing demand drive optimism
Ripple’s approval for money transmitter licenses in New York and Texas enables expanded financial services, fueling positive sentiment. XRP futures open interest has surged to $6 billion, up from November’s $650 million, reflecting strong demand. Moreover, the likelihood of a spot XRP ETF approval by the SEC—currently estimated at 73%—adds another bullish catalyst.

Ripple’s growing adoption fuels optimism

Daily transaction volumes and institutional interest rise
Ripple USD’s daily volume has soared to nearly $260 million, reinforcing the platform’s growth. With institutional and retail investors eyeing the potential upside, XRP’s fundamentals and technicals align for a possible rally to $12.

Keyword for images: XRP Doji Candle