The XRP Market: A Pivotal Moment
The crypto market is no stranger to volatility, and XRP’s recent price movement highlights its resilience amidst turbulent trends. Currently trading around $1.99, XRP has demonstrated relative stability, marking only a 4% decline this week—impressive compared to other altcoins like Cardano (ADA) and Bitcoin Cash (BCH).
Is a bullish reversal on the horizon? Key technical indicators suggest the possibility, but much depends on whether XRP holds its critical support at $1.97. This level could shape the next chapter of XRP’s journey, possibly driving a significant surge of 9% or more.
What’s Fueling XRP’s Bounce Potential?
Between December 1 and December 14, XRP’s daily chart revealed a bullish RSI divergence. Such divergences occur when the price makes a lower low but the Relative Strength Index (RSI) shows a higher low, indicating fading selling pressure and potentially hinting at a reversal from bearish to bullish momentum.
However, the setup relies heavily on XRP defending the $1.97 mark. On-chain data reveals that approximately 1.79 billion XRP were purchased in the critical range of $1.97 to $1.98, strengthening this support area. When prices approach these “cost basis” zones, holders are less likely to sell, reducing bearish pressure on the asset.
Targets To Watch: $2.17 and Beyond
If XRP retains its strength above $1.97, the first upside target sits at $2.17, representing a 9% price increase from current levels. This target coincides with heavy buy activity, as nearly 1.36 billion XRP were acquired between $2.16 and $2.17, making it a notable zone of resistance.
Other potential price targets include $2.28, $2.69, and $3.10. However, these targets depend on favorable market conditions and sustained bullish sentiment. For now, the immediate focus remains on maintaining support at $1.97.
What Happens if $1.97 Fails?
While there’s optimism for a rebound, traders and investors should remain cautious. A daily close below $1.97 would invalidate the bullish setup and pave the way for further declines, with downside targets around $1.81 and $1.77. This would undermine the bullish narrative and place XRP back in bearish territory.
Stay Ahead of the Market
To keep track of XRP’s price action and other market updates, subscribing to a daily crypto newsletter is an excellent way to stay informed. For example, be sure to check out Editor Harsh Notariya’s Daily Crypto Newsletter for expert insights and analysis delivered straight to your inbox.
Enhance Your Trading Performance
Looking for ways to improve your trading decisions? Consider incorporating tools like Ledger Nano S Plus hardware wallet for securely storing your crypto investments and tracking your portfolio efficiently. It’s a great companion for serious traders looking to stay in control of their digital assets.
Disclaimer: Always conduct thorough research and consult professionals before trading or investing in cryptocurrencies.
