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The cryptocurrency market’s hopes for a traditional year-end
surge are fading as Bitcoin (BTC) tumbled to its lowest level since late
November, marking a significant retreat from its recent record highs.
This also negatively affects the altcoin market, including
Ripple’s XRP. The fourth-largest cryptocurrency by market capitalization, has
experienced a significant downturn, dropping nearly 20% from its December 17
high of $2.72 to $2.20 as of December 24, 2024.
Let’s check why is the XRP price down today and what are the
XRP price predictions for 2024 and 2025.
The flagship Bitcoin dropped to $92,442 on December 24,
representing a 14.5% decline from its all-time peak of $108,000 reached just a
week ago. The leading token briefly attempted to recover above $95,000 before
settling around $94,000 in early trading, maintaining an 11% loss over the past
week.
At the same time, XRP is currently trading at $2.23, down
nearly 14% over the past seven days. The 24-hour low stands at $2.1298, testing
the current local support level.
The current price of XRP token. Source: Tradingview.com
XRP’s 24-hour trading volume stands at $11.09 billion,
indicating significant market participation despite persistent selling
pressure. The token faces critical support at $2.17, with technical indicators
showing mixed signals for potential recovery.
Market cap and prices of the top cryptocurrencies. Source: CoinMarketCap.com
Broader Crypto Market Impact:
- Bitcoin trades at $93,834, down 12.6% weekly
- Ethereum has fallen 15.5% to $3,337
- Solana shows a 15.9% weekly decline
This declines comes at a time when crypto markets
traditionally experience what traders call a “Santa Claus rally” – a
period of price appreciation during the final days of December and early
January.
Historical Context for Santa Rally and Market Outlook
Historical data shows that crypto markets have demonstrated
positive performance during the holiday season in previous bull markets.
Analysis reveals that between 2014 and 2023, the crypto market experienced
holiday rallies in eight out of ten instances, with gains ranging from 0.7% to
11.8%.
A significant market event looms on December 27, with
approximately $18 billion worth of Bitcoin and Ethereum options contracts set
to expire, potentially introducing additional market volatility . Despite the
current downturn, market sentiment indicators suggest a possible recovery, as
Bitcoin’s social sentiment reached its yearly low on December 22.
Why Is XRP Price Down?
The cryptocurrency’s sharp descent began following the
Federal Reserve’s December 18 policy meeting. While the Fed reduced its
benchmark rate to 4.25%–4.5%, Chair Jerome Powell’s hawkish tone caught
investors off guard. The Fed’s projection of only two quarter-point rate cuts
in 2025, down from the previously expected four, has tightened global liquidity
conditions.
The U.S. Dollar Index’s surge to 108.15, its highest level
in months, has further pressured cryptocurrency valuations. This strengthening
dollar has made speculative assets less attractive to investors, contributing
to XRP’s downward trajectory.
XRP Technical Analysis
The current market structure shows XRP trading below key
support levels, with immediate resistance at $2.49. The daily chart maintains a
bullish long-term outlook, with technical patterns suggesting potential for
higher prices if market conditions improve.
Looking at the XRP chart below, we observe a flag pattern
within which the current price correction is moving. The chart has paused
around the $2.20 support level. Even if this level is breached, the next
support levels are the psychological $2.00, followed by $1.89, and then the 50
EMA at $1.82. A drop below this zone would indicate to me that the flag pattern
has been invalidated, and bears might start to dominate the XRP chart.
XRP price technical analysis. Source: Tradingview.com
Above these levels, however, downward corrections should be
seen as opportunities to accumulate XRP at more attractive prices.
Resistance levels, on the other hand, are currently at
$2.49, $2.71 (the highs from December 17), and $2.91 (this year’s peaks).
Support and Resistance Levels for XRP
|
Support |
Resistance |
|
$2.20 |
$2.49 |
|
$2.00 |
$2.71 (Dec. |
|
$1.89 |
$2.91 (2023 |
|
$1.82 (50 |
– |
XRP Price Predictions
XRP Short-Term Outlook (2024)
The minimum expected price for XRP in December 2024 is
projected at $1.91, with a maximum potential of $2.56. Market analysts
anticipate an average trading price of $2.24 during this period.
XRP 2025 Predictions
- January 2025: Range
between $1.35 and $2.12 - February 2025: Expected to fluctuate between $1.3 and $2.5
- End of 2025: If institutional adoption continues, XRP could
climb to $5 or higher.
This complex interplay of macroeconomic factors, market
sentiment, and technical indicators will likely continue to influence XRP’s
price trajectory through 2024 and beyond. While short-term pressures persist,
long-term projections remain cautiously optimistic, though investors should
maintain awareness of the market’s inherent volatility and risk factors.
To some, $XRP looks overbought! To me, it looks undervalued after breaking out of this massive multi-year symmetrical triangle.
🟡Conservative target = $8.40
🟢Optimistic target = $48.12 pic.twitter.com/5dDMcD2jGC— Ali (@ali_charts) December 8, 2024
XRP Price Prediction, FAQ
Why is XRP dropping now?
XRP’s recent decline stems from multiple factors, with the
token falling nearly 20% from its December 17 high of $2.72 to $2.20. The
primary drivers include the Federal Reserve’s hawkish stance on interest rates,
broader cryptocurrency market weakness, and significant liquidations exceeding
$7 million in the past 24 hours. The strengthening U.S. Dollar Index, which
reached 108.15, has also pressured cryptocurrency valuations.
Does XRP have a future?
XRP demonstrates strong future potential, evidenced by a 28%
increase in active wallets over the past two years, adding 5.75 million
accounts. The platform’s focus on cross-border payments and expanding
partnerships across Asia, Africa, and Latin America suggests sustained growth
potential in the global financial infrastructure.
Why has XRP crashed?
The current market correction reflects broader
cryptocurrency market trends, with Bitcoin and Ethereum also experiencing
significant declines. The Fed’s recent decision to reduce rates by 0.25% was
overshadowed by Chair Powell’s cautious stance on future rate cuts, triggering
a market-wide selloff.
Will XRP ever recover?
Technical analysis suggests a positive long-term outlook
despite current bearish pressure. The token maintains support levels above key
moving averages, and market analysts anticipate recovery potential,
particularly given the increasing institutional adoption and technological
advancement.
What is the expected price of XRP in 2025?
Price predictions for 2025 vary among analysts, with
projections ranging from $1.44 to $4.44. The average trading price is expected
to stabilize around $2.24, with potential peaks reaching $5.25 under optimal
market conditions and regulatory clarity.
Will XRP reach $500 dollars?
While some extremely optimistic projections suggest XRP
could reach $500, this target appears unrealistic for the near term. More
conservative estimates indicate such valuations might only be possible by 2050,
if at all, considering market dynamics and adoption rates.
Can Ripple XRP reach $50 and by when?
Analysts project XRP could potentially reach $50 within the
next decade, approximately by 2035, with predictions showing a minimum price of
$27.68 and a maximum of $57.69 during this period. This projection assumes
continued market growth and widespread adoption of Ripple’s payment solutions.
Is XRP worth buying now?
The current price correction presents a potential entry
point for long-term investors, with XRP trading at key support levels around
$2.17. However, investors should consider the market’s inherent volatility,
regulatory environment, and broader economic factors before making investment
decisions. The token’s strong fundamentals, growing adoption, and technological
developments suggest potential for future growth, though careful risk
assessment is essential.
You can also check why the overall crypto market is down this week.
The cryptocurrency market’s hopes for a traditional year-end
surge are fading as Bitcoin (BTC) tumbled to its lowest level since late
November, marking a significant retreat from its recent record highs.
This also negatively affects the altcoin market, including
Ripple’s XRP. The fourth-largest cryptocurrency by market capitalization, has
experienced a significant downturn, dropping nearly 20% from its December 17
high of $2.72 to $2.20 as of December 24, 2024.
Let’s check why is the XRP price down today and what are the
XRP price predictions for 2024 and 2025.
The flagship Bitcoin dropped to $92,442 on December 24,
representing a 14.5% decline from its all-time peak of $108,000 reached just a
week ago. The leading token briefly attempted to recover above $95,000 before
settling around $94,000 in early trading, maintaining an 11% loss over the past
week.
At the same time, XRP is currently trading at $2.23, down
nearly 14% over the past seven days. The 24-hour low stands at $2.1298, testing
the current local support level.
The current price of XRP token. Source: Tradingview.com
XRP’s 24-hour trading volume stands at $11.09 billion,
indicating significant market participation despite persistent selling
pressure. The token faces critical support at $2.17, with technical indicators
showing mixed signals for potential recovery.
Market cap and prices of the top cryptocurrencies. Source: CoinMarketCap.com
Broader Crypto Market Impact:
- Bitcoin trades at $93,834, down 12.6% weekly
- Ethereum has fallen 15.5% to $3,337
- Solana shows a 15.9% weekly decline
This declines comes at a time when crypto markets
traditionally experience what traders call a “Santa Claus rally” – a
period of price appreciation during the final days of December and early
January.
Historical Context for Santa Rally and Market Outlook
Historical data shows that crypto markets have demonstrated
positive performance during the holiday season in previous bull markets.
Analysis reveals that between 2014 and 2023, the crypto market experienced
holiday rallies in eight out of ten instances, with gains ranging from 0.7% to
11.8%.
A significant market event looms on December 27, with
approximately $18 billion worth of Bitcoin and Ethereum options contracts set
to expire, potentially introducing additional market volatility . Despite the
current downturn, market sentiment indicators suggest a possible recovery, as
Bitcoin’s social sentiment reached its yearly low on December 22.
Why Is XRP Price Down?
The cryptocurrency’s sharp descent began following the
Federal Reserve’s December 18 policy meeting. While the Fed reduced its
benchmark rate to 4.25%–4.5%, Chair Jerome Powell’s hawkish tone caught
investors off guard. The Fed’s projection of only two quarter-point rate cuts
in 2025, down from the previously expected four, has tightened global liquidity
conditions.
The U.S. Dollar Index’s surge to 108.15, its highest level
in months, has further pressured cryptocurrency valuations. This strengthening
dollar has made speculative assets less attractive to investors, contributing
to XRP’s downward trajectory.
XRP Technical Analysis
The current market structure shows XRP trading below key
support levels, with immediate resistance at $2.49. The daily chart maintains a
bullish long-term outlook, with technical patterns suggesting potential for
higher prices if market conditions improve.
Looking at the XRP chart below, we observe a flag pattern
within which the current price correction is moving. The chart has paused
around the $2.20 support level. Even if this level is breached, the next
support levels are the psychological $2.00, followed by $1.89, and then the 50
EMA at $1.82. A drop below this zone would indicate to me that the flag pattern
has been invalidated, and bears might start to dominate the XRP chart.
XRP price technical analysis. Source: Tradingview.com
Above these levels, however, downward corrections should be
seen as opportunities to accumulate XRP at more attractive prices.
Resistance levels, on the other hand, are currently at
$2.49, $2.71 (the highs from December 17), and $2.91 (this year’s peaks).
Support and Resistance Levels for XRP
|
Support |
Resistance |
|
$2.20 |
$2.49 |
|
$2.00 |
$2.71 (Dec. |
|
$1.89 |
$2.91 (2023 |
|
$1.82 (50 |
– |
XRP Price Predictions
XRP Short-Term Outlook (2024)
The minimum expected price for XRP in December 2024 is
projected at $1.91, with a maximum potential of $2.56. Market analysts
anticipate an average trading price of $2.24 during this period.
XRP 2025 Predictions
- January 2025: Range
between $1.35 and $2.12 - February 2025: Expected to fluctuate between $1.3 and $2.5
- End of 2025: If institutional adoption continues, XRP could
climb to $5 or higher.
This complex interplay of macroeconomic factors, market
sentiment, and technical indicators will likely continue to influence XRP’s
price trajectory through 2024 and beyond. While short-term pressures persist,
long-term projections remain cautiously optimistic, though investors should
maintain awareness of the market’s inherent volatility and risk factors.
To some, $XRP looks overbought! To me, it looks undervalued after breaking out of this massive multi-year symmetrical triangle.
🟡Conservative target = $8.40
🟢Optimistic target = $48.12 pic.twitter.com/5dDMcD2jGC— Ali (@ali_charts) December 8, 2024
XRP Price Prediction, FAQ
Why is XRP dropping now?
XRP’s recent decline stems from multiple factors, with the
token falling nearly 20% from its December 17 high of $2.72 to $2.20. The
primary drivers include the Federal Reserve’s hawkish stance on interest rates,
broader cryptocurrency market weakness, and significant liquidations exceeding
$7 million in the past 24 hours. The strengthening U.S. Dollar Index, which
reached 108.15, has also pressured cryptocurrency valuations.
Does XRP have a future?
XRP demonstrates strong future potential, evidenced by a 28%
increase in active wallets over the past two years, adding 5.75 million
accounts. The platform’s focus on cross-border payments and expanding
partnerships across Asia, Africa, and Latin America suggests sustained growth
potential in the global financial infrastructure.
Why has XRP crashed?
The current market correction reflects broader
cryptocurrency market trends, with Bitcoin and Ethereum also experiencing
significant declines. The Fed’s recent decision to reduce rates by 0.25% was
overshadowed by Chair Powell’s cautious stance on future rate cuts, triggering
a market-wide selloff.
Will XRP ever recover?
Technical analysis suggests a positive long-term outlook
despite current bearish pressure. The token maintains support levels above key
moving averages, and market analysts anticipate recovery potential,
particularly given the increasing institutional adoption and technological
advancement.
What is the expected price of XRP in 2025?
Price predictions for 2025 vary among analysts, with
projections ranging from $1.44 to $4.44. The average trading price is expected
to stabilize around $2.24, with potential peaks reaching $5.25 under optimal
market conditions and regulatory clarity.
Will XRP reach $500 dollars?
While some extremely optimistic projections suggest XRP
could reach $500, this target appears unrealistic for the near term. More
conservative estimates indicate such valuations might only be possible by 2050,
if at all, considering market dynamics and adoption rates.
Can Ripple XRP reach $50 and by when?
Analysts project XRP could potentially reach $50 within the
next decade, approximately by 2035, with predictions showing a minimum price of
$27.68 and a maximum of $57.69 during this period. This projection assumes
continued market growth and widespread adoption of Ripple’s payment solutions.
Is XRP worth buying now?
The current price correction presents a potential entry
point for long-term investors, with XRP trading at key support levels around
$2.17. However, investors should consider the market’s inherent volatility,
regulatory environment, and broader economic factors before making investment
decisions. The token’s strong fundamentals, growing adoption, and technological
developments suggest potential for future growth, though careful risk
assessment is essential.
You can also check why the overall crypto market is down this week.
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