As a seasoned crypto investor with a knack for spotting trends and a keen eye for technical analysis, I find myself both concerned yet optimistic about the recent dip in XRP prices. Having been through numerous market cycles, I’ve learned that these downturns often precede significant upswings.
As a crypto investor, I’ve noticed that the surge in XRP’s value during November seems to have taken a downturn. It appears that the ongoing crypto market sell-off has erased some of the impressive gains I had seen earlier.
On Monday, the value of Ripple (XRP) dropped to $2.14, marking a 26% fall from its peak this month, indicating that it has entered a downtrend or ‘bear market’.
As an analyst, I observed that the decline in XRP’s price was linked to a persistent drop in its social sentiment score and a decreasing futures open interest. According to CoinGlass, the futures open interest plunged to approximately $1.89 billion on Monday, marking a significant drop from its year-to-date high of over $4.29 billion.
In recent weeks, the daily trading volume of Ripple has decreased noticeably as its momentum slowed down. Compared to the significant amount it processed a few weeks back, its 24-hour volume currently stands at over $10 billion, which is significantly lower.
Despite recent trends, there are some key underlying factors that could potentially drive up the price of XRP in the short term. One significant aspect is the reluctance of major investors to offload their holdings. As reported by Santiment, the number of XRP holders currently stands at over 5.75 million, which is higher than the October low of 5.36 million. Additionally, the decline in active addresses during this selling period has been minimal.
Ahead for XRP, there are more potential triggers. According to CoinMarketCap, the market capitalization of Ripple’s USD-pegged stablecoin, RLUSD, surpassed $53 million just a week after its debut. However, it should be noted that the assets in this stablecoin have not yet been confirmed by CoinMarketCap.
It’s increasingly likely that the Securities and Exchange Commission will endorse an XRP exchange-traded fund (ETF) by 2025. Former President Donald Trump has expressed a desire to be more supportive of cryptocurrencies, having already selected members for his crypto advisory team. The introduction of a spot ETF could potentially generate greater interest and demand for the coin.
XRP price analysis as a bullish pattern forms
Each day’s graph indicates a gradual development of a bullish pennant formation in Ripple’s price. This common pattern, resembling a vertical flagpole and a triangle, suggests an upcoming price increase.
On December 10th and 20th, the bottom edge of the triangle links the lowest points reached. The top edge brushes against the maximum swings on December 3rd and 17th. Indications suggest this consolidation pattern may persist for some time.
The current price of XRP has surpassed its 50-day moving average and is now at a significant level on the Murray Math Lines known as the ‘weak, stop & reverse’ point. This suggests that the coin could experience an uptrend, potentially reaching the yearly peak of approximately $2.90 set earlier this year, indicating a potential bullish breakout for XRP.
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2024-12-23 19:46