As the cryptocurrency market as a whole has seen a dip of 3% today, the price of XRP has dropped by 2.5% in the previous twenty-four hours, reaching $0.5497 along the way.
Even though the alternative cryptocurrency has increased by 42% over the course of the last year, the price of XRP has dropped by 7.5% in the previous week and by 10% in the past month.
Furthermore, despite the fact that its price has been able to maintain a position above its 200-day exponential moving average for the most of the previous few weeks, it has recently started exhibiting symptoms of going below it, which is something that may prove to be a cause for concern.
However, over the course of the longer term, 2024 is expected to become a more positive year for cryptocurrency as it develops, which means that the price of XRP may revive itself again in the not too distant future.
As the price of XRP continues to hold above the 200-day exponential moving average, is this a sign of stability or a sign of deception?
Let's not beat about the bush: the chart of XRP does not seem to be especially encouraging at the moment, with its indicators displaying strong signals of weakness.
Most significantly, its relative strength index (RSI) has dropped below 40 over the course of the previous several days, which is an indication of growing selling pressure.
At the same time, the 30-day average of XRP (yellow) has clearly started to move downward towards its 200-day average (blue), which indicates that the process of fall is still in its early stages and has a significant amount of time left before it is likely to reach its lowest point.
And while we are on the subject of declines, the price of XRP has, in fact, fallen below the 200-day exponential moving average (EMA) today, which is a highly bearish indication that may indicate that further losses are on the way.
Therefore, the most important support level (green) in this regard is $0.55: if XRP goes much below this price, it has the potential to frighten present holders and push more of them to sell their holdings.
It seems that whales have been the primary force behind the recent falls in XRP, with data indicating multiple significant transfers to exchanges over the previous few days. This is in addition to the ongoing selloff that has occurred when the Bitcoin ETF was introduced.
There is presently little indication that there will be any more accumulation, which suggests that XRP may suffer further losses before it makes a determined effort to rebound.
However, there are other reasons to have optimism about the price of XRP in the medium and long term, and this is not only due to the fact that the next Bitcoin halving, which is scheduled to take place in April, may prompt the market to become more positive.
In addition to this, it is quite probable that Ripple will finalize a comprehensive and comprehensive settlement with the SEC at some time during this year.
With the completion of this deal, the cryptocurrency company will be able to put an end to its protracted legal struggle and take the next step toward launching its own initial public offering.
If XRP were to go public, it would be a significant event that may propel it to new heights.
