XRP is showing signs of recovery following a sharp 18% decline in value, attributed to the broader cryptocurrency market downturn.
This drop, which saw the price fall from $2.7 to $2.08, coincided with Bitcoin’s retreat from $108,000 to under $100,000 after the Federal Reserve announced a 0.25% interest rate cut. Despite the bearish sentiment, analyst EGRAG suggests that XRP is poised for a bullish reversal.
XRP Finds Support After Recent Decline
According to EGRAG’s analysis, XRP found support in the $2.17–$2.27 price range following its descent to $2.2. Using a 1-hour chart, the analyst noted that this zone could be the foundation for stabilization and recovery.
#XRP Quick Update 1 Hour Time Frame ( UPDATE):
The #BULLS has Stepped IN. Trust the Process https://t.co/xQDzxuveIx pic.twitter.com/8fljp7iDYM
— EGRAG CRYPTO (@egragcrypto) December 18, 2024
Currently, XRP trades below the 21-period Exponential Moving Average (EMA), representing the nearest resistance level. The analyst remarked that this positioning highlights the ongoing tension between buyers and sellers.
EGRAG’s analysis indicates the formation of a potential double-bottom structure—a bullish reversal pattern—following the recent price action. The first bottom was observed when XRP dropped to $2.33 on December 16 before rebounding to $2.72, a move fueled by the launch of Ripple’s stablecoin, RLUSD . The second bottom formed during the recent decline to $2.17.
Should XRP consolidate within the current support range, it could set the stage for a recovery. However, the price must surpass the neckline resistance at $2.7 to confirm the double-bottom pattern.
Technical Indicators Support a Bullish Outlook
EGRAG’s analysis also highlights encouraging signs from key technical indicators. The Relative Strength Index (RSI) has aligned with price trends and recently hovered near 70, a level suggesting increasing momentum. The analyst stated that a breakout above 70 could pave the way for further strength, potentially reaching 90.
Additionally, the Moving Average Convergence Divergence (MACD) indicator supports the possibility of bullish momentum. Its histogram has flipped positive, signaling a potential upward trend. Meanwhile, the Average Directional Index (ADX) has also improved, indicating a strengthening trend.
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XRP’s Short-Term Scenarios
In a previous forecast made six days before the latest downturn, EGRAG outlined two potential scenarios for XRP’s short-term price movements. At that time, XRP was trading at $2.31. Scenario A suggested a breakout above $2.5, potentially initiating upward movement.
Scenario B, however, predicted a dip to $2.27 followed by consolidation within the $2.17–$2.27 range. According to the analyst, this consolidation phase would allow XRP to form a double-bottom structure, providing a foundation for subsequent bullish action.
The recent market activity suggests that XRP is following Scenario B. After testing the $2.2 level and finding support, the cryptocurrency is expected to consolidate before attempting a breakout. EGRAG noted that this phase would enable key moving averages to align, creating a stronger base for sustained growth.
At the time of writing, XRP is trading at $2.27, marking an 8.26% decrease in the past 24 hours. For now, investors are closely monitoring a possible price interaction with the $2.39 EMA resistance and the $2.7 neckline.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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