XRP Drops 25% in December—What’s Behind the Crash?

- XRP price could drop 15-20% in December due to bearish technical conditions and increased whale activity - XRP recently fell from $2.90 to $2.13, a drop of over 25% in three weeks [Unblock Media] The price of XRP is likely to drop by 15-20% in December due to bearish technical conditions and signals of increased distribution by whales. Recently, XRP declined from $2.90 and traded at $2.13 on December 23. This represents a drop of over 25% in the past three weeks. The price drop of XRP has been largely attributed to the Federal Reserve's hawkish pivot. As the Federal Reserve attempts to curb inflation by raising interest rates, investors tend to move towards safer assets and away from riskier assets such as cryptocurrencies. This shift leads to a decline in investor sentiment towards cryptocurrencies, including XRP, increasing selling pressure and driving prices down. XRP's weekly Relative Strength Index (RSI) showed an overbought state at above 70, suggesting a potential slowdown or reversal in the recent uptrend. In the past, when the RSI exceeded 70, such as in June 2022, XRP's price saw a sharp decline. This was due to the overbought state indicated by the RSI, prompting investors to realize profits by selling, causing the price to drop. On the daily chart, XRP is forming a descending triangle pattern, indicating a potential bearish reversal. If this pattern breaks below the $2.19 support level, XRP could drop to $1.69, calculated by subtracting the maximum height of the triangle from the breakdown point. This target aligns with the 50-day exponential moving average. Conversely, if the price rebounds from the lower trendline of the triangle, XRP could reach the next upward target of $2.50, coinciding with the upper trendline of the triangle. A clear break above the upper trendline might lead XRP to retest the annual high of $2.90. Additionally, the current consolidation of XRP might result in a short-term price correction, shaking out weaker hands and allowing new buyers to enter at lower price levels. This suggests a potential resumption of the overall uptrend, as predicted by some analysts. For example, analyst Bark forecasts that XRP could rise to $3.50 by January 2025, representing an increase of approximately 60% from the current price level. Positive fundamental factors also support this bullish outlook. For instance, if the lawsuit between the Securities and Exchange Commission (SEC) and Ripple concludes in Ripple's favor, XRP would gain clearer legal standing, enhancing its adoption and usage. Additionally, there is the possibility of an XRP spot exchange-traded fund (ETF) being launched, which would facilitate institutional investors' access to XRP, thereby boosting demand. Another factor driving market sentiment is speculation that Bitstamp will develop a cryptocurrency derivatives exchange on the XRP Ledger. "XRP gonna make history next year," read a post by Bitstamp's official X handle on December 21.