- Current technical indicators place XRP’s lower boundary at $2.103, possibly preventing further short-term decreases.
- Despite a recent 6% price drop, a bullish divergence on the XRP/USDT pair hints at an upcoming relief bounce.
The cryptocurrency XRP, associated with Ripple, is currently experiencing a precarious market position according to analysis using Bollinger Bands.
This technical indicator suggests that XRP still faces more potential downside risk, reinforcing concerns indicated by a recent ETHNews report that projected a possible fall to as low as $1 per token.
This forecast aligns with patterns observed in 2018 when XRP’s price exceeded the upper Bollinger Band before receding to its median value. Since that report, XRP’s price has decreased by more than 3.5%, and further declines might occur.
Despite this, the situation might not be as dire in the short term as it seems. The Bollinger Bands on XRP’s daily price chart now place the lower range boundary at $2.103, a further 3.56% below its current price.
Should XRP establish support at this level, it might stabilize temporarily, forestalling further immediate declines. Moreover, the weekly chart hints that the lower band might rise, potentially averting the grim projection of a fall to $1 per token.
The future path for XRP is still uncertain, with its current price maintaining above $2 per token, and a substantial 53% increase required to reach a new all-time high.
Nevertheless, XRP remains a major player in the cryptocurrency arena, ranking as the third largest by market capitalization with $125 million and a significant daily trading volume of $4.67 billion.
Recent market activities have seen XRP’s price decrease by over 6% in the past 24 hours, as per CoinGecko data. Yet, there could be a glimmer of hope for XRP investors.
🚨 Crypto alert:
[#XRP–#USDT] RSI Bullish Divergence (1h) pic.twitter.com/MdXBOHUoCU— 100eyes Crypto Scanner 🌐 (@100eyesCrypto) December 26, 2024
According to the 100eyes Crypto Scanner, the XRP/USDT pair exhibits a bullish divergence on an hourly chart, suggesting a potential upcoming relief bounce. This pattern occurs when the Relative Strength Index (RSI) increases despite a falling price, indicating a weakening bearish trend.
However, this potential bullish signal should be approached with caution, as it must be considered in conjunction with other key technical indicators.
Currently, XRP is the worst-performing token among the top ten, trailing behind others like Cardano (ADA) and Dogecoin (DOGE), which have also seen significant declines. Bitcoin too has suffered a recent drop, further indicating a broader market retreat.
Looking forward, several factors might influence a rally in XRP’s price in the near future. These include a more crypto-friendly stance from the SEC and growing interest in XRP-related Exchange Traded Funds (ETFs).
Technical and Fundamental Analysis of XRP (Ripple)
XRP is currently trading at $2.18 USD, reflecting a 0.38% increase over the past 24 hours. Its trading range during this time has fluctuated between $2.13 and $2.23 USD, showcasing a period of relative stability. With a market capitalization of $125,177,464,804 USD, XRP solidifies its position as the fourth-largest cryptocurrency by market value.
This ranking highlights its significance in the cryptocurrency space and its role as a key player among digital assets.
Over the past 24 hours, XRP has experienced a trading volume of $4,974,637,241 USD, marking a 19.7% increase. This surge in volume indicates heightened trading activity and growing interest among market participants. Such strong activity is a potential signal for future price volatility or a possible breakout, depending on market conditions and broader sentiment.
From a fundamental perspective, XRP is designed to act as a bridge between financial institutions and fiat currencies. This utility enables quick and cost-effective settlements, making it a preferred choice for cross-border payments.
XRP’s total token supply is capped at 100 billion, with 57 billion currently in circulation. This controlled supply helps mitigate inflation risks, adding to its appeal for institutional and retail investors alike.
In terms of technical indicators, XRP’s immediate resistance level is near $2.23 USD, while its key support level is at $2.13 USD. The cryptocurrency has shown sideways price movement recently, signaling consolidation. Such behavior often precedes a breakout, and with trading volumes rising steadily, a potential upward movement may be on the horizon.
