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XRP Price Drops 5%: Key Support and Bearish Trends Explained

XRP Price Drops 5%: Key Support and Bearish Trends Explained

CoinEditionCoinEdition2024/12/08 16:00
By:Anisha Pandey

XRP price action has printed a series of bearish daily candles, indicating a potential downtrend. XRP has dropped 5.4% in 24 hours and trades at $2.39. The eminent launch of RLUSD and approval of XRP ETFs under Trump could push XRP higher.

  • XRP price action has printed a series of bearish daily candles, indicating a potential downtrend.
  • XRP has dropped 5.4% in 24 hours and trades at $2.39.
  • The eminent launch of RLUSD and approval of XRP ETFs under Trump could push XRP higher.

XRP has dropped 5.44% in the past 24 hours, trading at $2.39, holding a market cap of $136.44 billion. This decline moves XRP out of the top three cryptocurrencies, sliding to be the fourth-largest by valuation.

While XRP rallied to $2.70 during the recent market upswing, it failed to sustain the momentum, retreating from the $3 milestone. CoinMarketCap data shows that XRP remains up 320% over the last 30 days, despite undergoing what analysts describe as a necessary correction.

Key Bearish Indicators for XRP

The daily chart reveals a downtrend forming as multiple candles closed below previous highs. This pattern signals reduced buying demand and increased profit-taking, which limits upward movement.

XRP Price Drops 5%: Key Support and Bearish Trends Explained image 0 XRP Price Drops 5%: Key Support and Bearish Trends Explained image 1

Another major bearish signal is the possibility of a bearish divergence on the MACD (Moving Average Convergence Divergence) indicator. The signal line and the MACD line are coming very close to each other and if the orange once jumps above the blue one, a correction can be expected. 

XRP Price Drops 5%: Key Support and Bearish Trends Explained image 2 XRP Price Drops 5%: Key Support and Bearish Trends Explained image 3

XRP’s Profit-Taking Pressures

The Relative Strength Index for the XRP price action confirms a significant surge in the profit taking for the cryptocurrency as it dropped from massive overbought levels to a healthy reading of 66.95. It is clear that the buyers are overall in control but sellers are mounting.

XRP Price Drops 5%: Key Support and Bearish Trends Explained image 4 XRP Price Drops 5%: Key Support and Bearish Trends Explained image 5

The gradient of the RSI line also suggests a massive XRP sell-off going on at the time. The sharp gradient suggests that a retest of lower support levels is definitely possible. The nearest XRP support stands at $2.15 while another major support is at $1.30 price region. 

Read also: Ripple CEO Meets Trump: How XRP’s $3 Surge Hints at a $30 Breakout

It is important to note that the firm behind XRP, Ripple, stands to gain a lot under the new administration of Donald Trump. The anticipated launch of Ripple’s RLUSD stablecoin by year-end could support XRP’s growth and market position .

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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