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Analysis

XRP Price Analysis: 16 December

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XRP
Source: Pixabay

XRP’s price drop over the past few days was expected. After registering a massive bullish rally towards the end of November, the asset has declined a bit over the past few days. December hasn’t been kind and currently, the asset is looking to re-test a critical support. At press time, XRP was valued at $0.4504 with a market cap of $20 billion.

XRP 1-day chart

Source: XRP/USD on Trading View

The 1-day chart of XRP exhibits its recent depreciation quite dramatically. Registering a yearly high at $0.68, the valuation recently dropped under its immediate support at $0.52. While the current pullback is healthy, a drop under the next support might be very consequential for XRP’s price. Support at $0.42 seems critical since any drop under that value would allow the 50-Moving Average to turn into an overhead resistance.

Currently, it is acting as support but any further trend reversal might open up the possibility for a longer period of correction. The trading volume has dropped significantly over the course of last week.

Market Reasoning

Source: XRP/USD on Trading View

Market Indicators are extremely bearish but there is a possibility of a bullish reversal going forward. With Relative Strength Index or RSI, the selling pressure is dragging down the indicator to its previous low from which, a pullback is possible.

Awesome Oscillator or AO indicated high bearish momentum but it is slowly fading out at the moment.

Weekly Chart

Source: XRP/USD on Trading View

While the 1-day chart might be indicative of a critical resistance at $0.42, for a strong bullish rally next year, XRP should close a position above $0.46 before the end of the week. As illustrated, the asset has managed to keep its valuation above the ascending support but retaining a position above $0.46 remains the main objective.

Conclusion

While XRP’s 1-day chart is a little disarray, its bullish credentials cannot be completely discounted as it is close to reversing the current trend in the long run.

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Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.