- XRP was up 280% year-to-date, a sign of investor confidence.
- It is in a retracement phase and the support at $2.2 has held firm so far.
As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I have seen my fair share of market upswings and downturns. The recent surge in XRP, up an impressive 280% year-to-date, is indeed a testament to investor confidence, especially given its potential benefits from increased regulatory clarity.
Over the past month, Ripple (XRP) has been climbing in value, boosted by the outcome of the U.S. presidential election which positively impacted the entire cryptocurrency market. Notably, Ripple could potentially gain from a clearer regulatory landscape.
This could explain the increased capital inflow and investor confidence in recent weeks.
On Tuesday, via a post on the platform now known as X (previously Twitter), Ripple’s CEO, Brad Garlinghouse, disclosed that their stablecoin had secured regulatory clearance from the New York State Department of Financial Services.
The eagerly anticipated RLUSD stablecoin represents Ripple’s endeavor to seize a share of the $200 billion stablecoin market, an area projected to expand to approximately $3 trillion over the next five years.
XRP has bounced 23% from the lows set 12 hours before press time on the back of this news.
Momentum fading after the $2.9 rejection
Following a breakthrough in pricing a month ago, XRP experienced an impressive surge of 315% within approximately three weeks. However, after reaching its local peak at $2.9, there’s been a slight pullback of 19.41%. At the time of observation, it was trading above the significant support level of $2.2.
The RSI has formed lower highs alongside the price, showing a drop in momentum.
Yet, the RSI on the daily chart was still above neutral 50 to show bullish momentum was still dominant. Also, the market structure was on the verge of flipping bearishly.
A daily close below $2.17 would change the structure.
Previously dropped OBV (On Balance Volume) found itself at a level of resistance dating back to last month, following a downward trend over the past ten days. This suggests that the price of XRP might continue to decline in the upcoming days and weeks.
The magnetic zone beyond $2.5 could attract prices
Although the brief jump from $1.9 seemed promising, it may not signal an immediate change in direction. Instead, it seems more plausible that XRP is seeking liquidity and requires some time to prepare for its next significant upward surge.
Over the coming seven days, it’s anticipated that this price range between $2.66 and $2.72 will likely be challenged. In the immediate future, the market may trend downwards under bearish influence.
The 3-day selling plan highlights the $2.45 to $2.5 range as a strong short-term barrier. Beyond this point, there are numerous potential selling points up to $2.7.
Read Ripple’s [XRP] Price Prediction 2024-25
Combining the various timeframes’ price levels suggests that the $2.5 to $2.7 range might prove challenging as a near-term resistance. It seems probable that a refusal at this level and a subsequent fall below $2 could occur.
Conversely, if a daily session ends with a close above $2.7 and there’s a retest of $2.5 as a potential support level, it might indicate that XRP is poised to move upward again.
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2024-12-11 16:07