Category: Crypto News, News
Why Is XRP Going Down Today? Price Drops to December Lows, Analyst Predicts $50 in 2025
XRP, one of
the biggest cryptocurrencies used by Ripple, tumbled to December lows of $2.04
on Monday, leading cryptocurrency market losses as a strengthening U.S. dollar
and year-end profit-taking pressured digital assets.
Let’s
examine why XRP is down and what technical analysis suggests about future
movements. We’ll also review XRP price predictions from analysts and experts.
The XRP price is currently in a downward correction. Source: CoinMarketCap.com
fourth-largest cryptocurrency by market capitalization has dropped nearly 30%
from its December 3 peak of $2.9, with a 6% decline in the past 24 hours alone.
The token’s trading volume stands at $4.5 billion, indicating significant
selling pressure as investors reduce exposure ahead of year-end.
The decline
is also causing liquidations in the leveraged market. Over the past 24 hours,
these liquidations totaled $173 million, with the majority being long
positions. A significant portion of these liquidations, approximately $7
million in long positions, was attributed to XRP.
The
cryptocurrency market’s traditional year-end rally hopes have faded, with
Bitcoin retreating from its recent all-time high of $108,000 to trade around
$93,700, marking a 12.6% weekly decline. Other major cryptocurrencies have
followed suit, with Ethereum falling 15.5% to $3,337 and Solana showing a 15.9%
weekly slump.
The U.S.
Dollar Index’s surge to 108.5, its highest level in months, has emerged as a
key factor pressuring cryptocurrency valuations. This strengthening dollar has
made speculative assets less attractive to investors, particularly affecting
dollar-denominated assets like cryptocurrencies.
The USD
hasn’t been this strong in over 20 years, which certainly makes it harder for
cryptocurrencies denominated in it to sustain growth during an already extended
bull run.
XRP Technical Analysis
The current
market structure shows XRP trading above key support levels, with immediate
resistance at $2.5. Technical analysts have identified $2.0-1.96 as a crucial
support level that needs to hold to prevent further decline.
In my view, XRP price technical analysis and pennant chart pattern. Source: Tradingview.com
XRP is still moving within a time-limited pennant chart pattern, with its lower
boundary currently aligning with the mentioned psychological support level and
December lows. A breakout above this level would not only allow XRP to overcome
current resistance dynamically but also provide a chance for a measured upward
movement towards the $4 or even $5 level.
This
scenario would be invalidated if the price falls below the lower boundary of
the pennant and the psychological support at $2. In that case, the bears could
regain control, and the chart would return to a downtrend.
XRP price key support and
resistance levels
- XRP Price Support Levels:
- $2.0 – Psychological support level
- $1.9 – December 10 lows
- Lower
boundary of the pennant chart pattern
XRP Price Resistance Levels:
- $2.3 – Upper boundary of the pennant
formation - $2.4–$2.5 – Local highs from the past two
weeks - $2.73 – December 17 highs
- $2.9 – December 3 highs
XRP Price Predictions:
Future Outlook
Despite the
current downturn, some analysts maintain a bullish long-term outlook. The
January Effect could provide some relief to the market in the coming weeks.
For
December 2024, analysts project a minimum price of $1.91 for XRP, with a
maximum potential of $2.5. However, the immediate focus remains on defending
current support levels to prevent further deterioration in market sentiment.
In January
2025, XRP is projected to trade within a range of $1.35 to $2.12. By February,
the price is expected to fluctuate slightly, moving between $1.30 and $2.50. Looking
ahead to the end of 2025, if institutional adoption continues to gain momentum,
XRP could potentially climb to $5 or higher, reflecting increased market
confidence and demand.
For
instance, Egrag, a popular analyst with 70,000 followers on X (formerly
Twitter), believes that XRP could rise to $50 in 2025.
“The next
10 days are crucial for XRP. From a pure technical analysis perspective
(ignoring fundamentals for a moment), this could be the most pivotal price
action in XRP’s history,” Egrag commented.
#XRP – High Timeframe (HTF) Analysis:
TRUST ME, U’RE NOT #BULLISH ENOUGH, EVEN THE OGs 😎
Time for a Thread 🧵 (1/7)
The next 10 days are crucial for #XRP. From a Pure TA perspective (ignoring fundamentals for a moment), this could be the most pivotal price action in XRP’s… pic.twitter.com/Hrx225lglT
— EGRAG CRYPTO (@egragcrypto) December 20, 2024
Market
participants are also closely watching the incoming Trump administration’s
potential impact on the crypto sector. The appointment of pro-crypto SEC
chairman Paul Atkins and potential regulatory clarity could serve as catalysts
for future price recovery.
XRP Price, FAQ
What is the expected price
of XRP in 2025?
XRP price
projections for 2025 show varying estimates. Conservative forecasts suggest a
trading range between $1.35 and $2.50. However, crypto expert Levi Rietveld
presents a more optimistic outlook, suggesting XRP could reach $20-23, with an
extremely bullish scenario of $70 per coin.
Why is the XRP coin
falling?
XRP’s
recent decline stems from multiple factors. The token has experienced
significant selling pressure due to massive liquidations totaling $14.5 million
in leveraged long positions. Additionally, Bitcoin’s dominance and market focus
shift have redirected capital flows away from altcoins. The strengthening U.S.
Dollar Index has also pressured cryptocurrency valuations.
Does XRP have a future?
XRP’s
future appears promising, particularly in the financial technology sector. The
platform continues to expand its partnerships across Asia, Africa, and Latin
America. The cryptocurrency’s role in cross-border payments and growing
institutional adoption suggest strong potential for long-term growth. By
2027-2028, XRP could become more integrated into traditional finance and
blockchain solutions.
Is XRP ever going to
recover?
Technical
analysis indicates positive recovery potential despite current bearish
pressure. XRP maintains support at key levels, including the 23.6% Fibonacci
retracement near $2.33. The token’s growing network activity and increasing
institutional adoption support the possibility of price recovery. Market
experts anticipate potential upward movement once the current correction phase
concludes.
Can XRP reach $500?
Reaching
$500 appears highly improbable in the near term. Such a valuation would require
XRP’s market capitalization to exceed $26 trillion, surpassing the combined
value of the world’s largest companies6. While some analysts project growth
potential, more realistic estimates suggest price targets between $15-25 by
2030. Grok AI suggests $500 might only be possible beyond 2030, contingent on
widespread global payment adoption.
XRP, one of
the biggest cryptocurrencies used by Ripple, tumbled to December lows of $2.04
on Monday, leading cryptocurrency market losses as a strengthening U.S. dollar
and year-end profit-taking pressured digital assets.
Let’s
examine why XRP is down and what technical analysis suggests about future
movements. We’ll also review XRP price predictions from analysts and experts.
The XRP price is currently in a downward correction. Source: CoinMarketCap.com
fourth-largest cryptocurrency by market capitalization has dropped nearly 30%
from its December 3 peak of $2.9, with a 6% decline in the past 24 hours alone.
The token’s trading volume stands at $4.5 billion, indicating significant
selling pressure as investors reduce exposure ahead of year-end.
The decline
is also causing liquidations in the leveraged market. Over the past 24 hours,
these liquidations totaled $173 million, with the majority being long
positions. A significant portion of these liquidations, approximately $7
million in long positions, was attributed to XRP.
The
cryptocurrency market’s traditional year-end rally hopes have faded, with
Bitcoin retreating from its recent all-time high of $108,000 to trade around
$93,700, marking a 12.6% weekly decline. Other major cryptocurrencies have
followed suit, with Ethereum falling 15.5% to $3,337 and Solana showing a 15.9%
weekly slump.
The U.S.
Dollar Index’s surge to 108.5, its highest level in months, has emerged as a
key factor pressuring cryptocurrency valuations. This strengthening dollar has
made speculative assets less attractive to investors, particularly affecting
dollar-denominated assets like cryptocurrencies.
The USD
hasn’t been this strong in over 20 years, which certainly makes it harder for
cryptocurrencies denominated in it to sustain growth during an already extended
bull run.
XRP Technical Analysis
The current
market structure shows XRP trading above key support levels, with immediate
resistance at $2.5. Technical analysts have identified $2.0-1.96 as a crucial
support level that needs to hold to prevent further decline.
In my view, XRP price technical analysis and pennant chart pattern. Source: Tradingview.com
XRP is still moving within a time-limited pennant chart pattern, with its lower
boundary currently aligning with the mentioned psychological support level and
December lows. A breakout above this level would not only allow XRP to overcome
current resistance dynamically but also provide a chance for a measured upward
movement towards the $4 or even $5 level.
This
scenario would be invalidated if the price falls below the lower boundary of
the pennant and the psychological support at $2. In that case, the bears could
regain control, and the chart would return to a downtrend.
XRP price key support and
resistance levels
- XRP Price Support Levels:
- $2.0 – Psychological support level
- $1.9 – December 10 lows
- Lower
boundary of the pennant chart pattern
XRP Price Resistance Levels:
- $2.3 – Upper boundary of the pennant
formation - $2.4–$2.5 – Local highs from the past two
weeks - $2.73 – December 17 highs
- $2.9 – December 3 highs
XRP Price Predictions:
Future Outlook
Despite the
current downturn, some analysts maintain a bullish long-term outlook. The
January Effect could provide some relief to the market in the coming weeks.
For
December 2024, analysts project a minimum price of $1.91 for XRP, with a
maximum potential of $2.5. However, the immediate focus remains on defending
current support levels to prevent further deterioration in market sentiment.
In January
2025, XRP is projected to trade within a range of $1.35 to $2.12. By February,
the price is expected to fluctuate slightly, moving between $1.30 and $2.50. Looking
ahead to the end of 2025, if institutional adoption continues to gain momentum,
XRP could potentially climb to $5 or higher, reflecting increased market
confidence and demand.
For
instance, Egrag, a popular analyst with 70,000 followers on X (formerly
Twitter), believes that XRP could rise to $50 in 2025.
“The next
10 days are crucial for XRP. From a pure technical analysis perspective
(ignoring fundamentals for a moment), this could be the most pivotal price
action in XRP’s history,” Egrag commented.
#XRP – High Timeframe (HTF) Analysis:
TRUST ME, U’RE NOT #BULLISH ENOUGH, EVEN THE OGs 😎
Time for a Thread 🧵 (1/7)
The next 10 days are crucial for #XRP. From a Pure TA perspective (ignoring fundamentals for a moment), this could be the most pivotal price action in XRP’s… pic.twitter.com/Hrx225lglT
— EGRAG CRYPTO (@egragcrypto) December 20, 2024
Market
participants are also closely watching the incoming Trump administration’s
potential impact on the crypto sector. The appointment of pro-crypto SEC
chairman Paul Atkins and potential regulatory clarity could serve as catalysts
for future price recovery.
XRP Price, FAQ
What is the expected price
of XRP in 2025?
XRP price
projections for 2025 show varying estimates. Conservative forecasts suggest a
trading range between $1.35 and $2.50. However, crypto expert Levi Rietveld
presents a more optimistic outlook, suggesting XRP could reach $20-23, with an
extremely bullish scenario of $70 per coin.
Why is the XRP coin
falling?
XRP’s
recent decline stems from multiple factors. The token has experienced
significant selling pressure due to massive liquidations totaling $14.5 million
in leveraged long positions. Additionally, Bitcoin’s dominance and market focus
shift have redirected capital flows away from altcoins. The strengthening U.S.
Dollar Index has also pressured cryptocurrency valuations.
Does XRP have a future?
XRP’s
future appears promising, particularly in the financial technology sector. The
platform continues to expand its partnerships across Asia, Africa, and Latin
America. The cryptocurrency’s role in cross-border payments and growing
institutional adoption suggest strong potential for long-term growth. By
2027-2028, XRP could become more integrated into traditional finance and
blockchain solutions.
Is XRP ever going to
recover?
Technical
analysis indicates positive recovery potential despite current bearish
pressure. XRP maintains support at key levels, including the 23.6% Fibonacci
retracement near $2.33. The token’s growing network activity and increasing
institutional adoption support the possibility of price recovery. Market
experts anticipate potential upward movement once the current correction phase
concludes.
Can XRP reach $500?
Reaching
$500 appears highly improbable in the near term. Such a valuation would require
XRP’s market capitalization to exceed $26 trillion, surpassing the combined
value of the world’s largest companies6. While some analysts project growth
potential, more realistic estimates suggest price targets between $15-25 by
2030. Grok AI suggests $500 might only be possible beyond 2030, contingent on
widespread global payment adoption.
Written by : Editorial team of BIPNs
Main team of content of bipns.com. Any type of content should be approved by us.
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