On New Year’s Eve, mixed signals emerge for XRP, a cryptocurrency focused on payment solutions, although it experienced a strong performance throughout 2024. As it currently trades at $2.12, it shows a 5% increase, even with an 8% drop for the week, according to CoinMarketCap.
Increased transactional activity has created a sense of optimism among investors. Additionally, XRP retains its position as the fourth largest cryptocurrency by market capitalization, sitting at an impressive $121 billion.
From a technical standpoint, XRP is positioned above a critical support threshold of $2.1 while maintaining a generally positive trend. However, a drop below this support level could lead to increased selling pressure, resulting in a potential decline in price. Since November, XRP’s value has surged over 200%, sparking optimism about its future. Nonetheless, this rapid ascent brings inherent risks.
After experiencing a price surge, XRP entered a consolidation phase from early December until December 20. Unfortunately, this consolidation did not yield a desired upward breakout, leaving the coin exposed to pivotal price levels that could shape its future trajectory.
Importantly, the price remains elevated above both the 50-day and 200-day moving averages, which serve as additional support levels. However, the Relative Strength Index (RSI) has declined from a peak of 95 earlier in the month to its current 45. This figure is still above the oversold threshold of 30, suggesting further declines might occur before a potential trend reversal.
The bearish outlook is aggravated by activity from larger holders, often referred to as “whales.” Those who possess over a million XRP tokens have been consistently selling since early December, resulting in an overall decrease of 180 million XRP held by these significant players over the past month.
Looking ahead to 2025, XRP’s price will heavily depend on its ability to maintain crucial support levels. If it can hold above $2.2, there is a possibility of a rally toward $2.50 or potentially as high as $10 over the course of the year. Conversely, if it fails to overcome resistance levels, the price may drop below $1.9, generating even more downward pressure.
With current prices situated above the oversold range, it appears that selling pressure could begin to ease, potentially allowing for greater price stabilization in the near future. Thus, as the new year begins, the outlook for XRP remains cautiously optimistic, while investors remain vigilant regarding the crucial price levels and market conditions that will dictate future performance.