financemagnates.com
It is New Year’s Eve, and XRP is flashing mixed signals despite its strong performance in 2024. The payment-focused cryptocurrency currently trades at $2.12, representing a price surge of 5% despite weekly losses of 8%, according to CoinMarketCap data.
A surge in transactional activity has bolstered optimism among investors. XRP has also maintained fourth place in the crypto listing, with a market cap of $121 billion.
Mixed Price Signals
Technically, it is trading above an important support level of $2.1 despite maintaining a positive trend. A price below this level could open more sell trades, and the price can drop further. XRP’s price has surged over 200% between November and December, leaving many investors optimistic about the coin's future. However, this rapid growth has not come without risks.
Following the price surge, XRP consolidated between early December and December 20. Against the wishes of many investors, the consolidation did not result in a price breakout to the upside. The coin is now facing several critical price levels that could determine its next move.
Notably, the price remains above the 50 and 200 moving averages, which also act as a potential support level. The Relative Strength Index (RSI) has also dropped from a high of 95 at the start of the month to currently at 45. This remains above the 30 oversold zone, meaning the token could drop further before any change of trend.
The bearish sentiment is further compounded by whale distribution. Large holders of XRP, those with over a million tokens, have been actively selling since early December. The supply held by these major players has decreased by 180 million XRP in the past month, Cointelegraph reported.
Key Price Levels
Looking ahead to 2025, XRP’s price will be closely tied to its ability to hold key support levels. If XRP can maintain its position above $2.2, it may rally toward $2.50 or higher, potentially $10 in the coming year.
However, a failure to break through resistance could cause the coin to dip below $1.9 amid further downward pressure. Based on the current price above the oversold zone, the selling pressure could be easing, and the price could stabilize.