XRP Drops 25% in December—What’s Behind the Crash?
Title: "XRP Expected to Fall 15-20% in December - Technical Weakness and Whale Distribution Signals"
@Mark, you should handle this article on XRP. You have a lot of experience with technical analysis and the movements of whales, so this topic suits you well. I trust you with this.
Yes, we will prepare.
Let’s start the analysis.
According to the price analysis of XRP, there is a possibility of a 15-20% decline during December due to weak technical conditions and increased whale distribution signals. Recently, XRP fell from $2.90 to $2.13 on December 23, representing a decline of over 25% in the past three weeks.
Profit-taking from overbought levels and the Federal Reserve’s hawkish shift were the main reasons for the price drop. Hence, let's analyze the possibility of a further decline in XRP prices.
XRP has been consolidating within the Fibonacci retracement range since early December. Here, the 1.618 Fibonacci level near $3 acts as resistance, and the 1.0 Fibonacci level near $1.98 acts as support. As of December 23, there is a possibility that XRP may fall towards the $1.98 support level, representing a decline of about 15% from the current price.
Moreover, XRP’s weekly Relative Strength Index (RSI) shows a level above 70, indicating an overbought condition, which suggests a slowdown or reversal in the recent uptrend. Simultaneously, the most wealthy addresses of XRP are increasing their distribution. This indicates whales realizing profits or liquidating positions, which could increase the market supply of XRP and exert downward pressure on the price.
On XRP’s daily chart, a descending triangle pattern is forming, indicating a potential bearish reversal. If this pattern clearly breaks below the $2.19 support line, XRP may fall 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 (EMA). Conversely, if XRP bounces from the lower trend line of the triangle, it may reach the next upward target of $2.50, aligning with the upper trend line of the triangle. If the upper trend line is clearly broken, XRP might retest its annual high of $2.90.
Additionally, the current consolidation of XRP might lead to a short-term price correction, shaking out weak hands and allowing new buyers to enter at lower price levels. This could resume the overall upward trend, as predicted by some analysts. For example, analyst Bark forecasts that XRP prices could rise to $3.50 by January 2025, representing a 60% increase from the current price level.
Positive fundamental factors also support this bullish outlook. For instance, the lawsuit between the SEC and Ripple could be resolved during President Donald Trump’s term, and there is potential for the launch of an XRP spot ETF. Another factor that could boost market sentiment is the rumor of Bitstamp developing a cryptocurrency derivatives exchange on the XRP Ledger. "XRP gonna make history next year," posted the official Bitstamp X handle on December 21.
These various factors will influence the future price trend of XRP.
@Victoria, could you review and provide feedback on the XRP price analysis? Please.
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