XRP Outperforms The Crypto Market! Technical Analysis Of December 4, 2024

The XRP recorded a spectacular increase of over 286% in November. Let’s examine the upcoming prospects for its price.

XRP Situation

After rejecting the resistance at $0.91, XRP underwent a correction followed by a long consolidation period between $0.74 and $0.44. Thanks to growing buyer interest, the cryptocurrency experienced a significant expansion, even surpassing the bullish forecasts laid out in the analysis from November 14. Indeed, XRP reached $2.90, its highest level since January 2018. The crypto recorded a 483% increase in less than six weeks, propelling XRP to the third-largest market capitalization in the cryptocurrency market. It is worth noting that several factors likely contributed to these exceptional performances, including rumors surrounding Donald Trump and Ripple, the potential arrival of an XRP ETF, as well as the approval by New York regulators of the stablecoin issued by Ripple. XRP thus overcame numerous resistances and now seems ready to reach its ATH, identified at $3.55.

At the time of writing, the XRP price is trading around $2.66. A slight selling interest has emerged, particularly as the second resistance of the monthly pivot points approaches. As alarming as this may seem, it is nonetheless worth noting that the short, medium, and long-term trends remain bullish, as demonstrated by the 50 and 200 moving averages, which are now well-oriented upwards. Regarding XRP’s momentum, it has, unsurprisingly, been largely revised upwards, as evidenced by its price and oscillators. Although this situation is attractive, it is important to remember that XRP recently experienced significant bullish volatility. This phenomenon is often a precursor to a pause or even a correction to come.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. He is currently a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and support around financial markets in a professional and warm atmosphere.

Focus on XRP Derivatives (XRP/USDT)

The open interest in XRP/USDT perpetual contracts has evolved in correlation with the appreciation of its underlying asset, indicating predominantly buying intent from speculators. This dynamic is confirmed by rising funding rates, revealing a predominance of long positions. However, it is important to note a persistent selling pressure on market orders, observed through the CVD, which has clearly diverged from these recent indicators. On the liquidation side, a notable spike in liquidations of short positions, exceeding $64 million, has been observed. Such a phenomenon had not been noted since 2021, suggesting a possible capitulation of sellers in the short term.

The heat map of liquidations for XRP/USDT contracts reveals that all liquidation zones located above the current XRP prices have been crossed. Now, the most pronounced liquidation zones are found below the current price. The nearest is just below $2.15. Further down, a notable zone appears between $2 and $1.74. Finally, we can observe zones between $1.60 and $1.55, as well as around $1.41. The approach of the price towards these levels could trigger a massive order execution, thus increasing the risk of heightened volatility for the crypto. These zones therefore represent a crucial point of interest for investors.

Forecasts for XRP Price

• If the XRP price remains above $2, we could consider a breakthrough above $2.90 or even $3. The next resistance to watch, if the bullish movement continues, would be the ATH of XRP identified at $3.55. Beyond this, the third resistance zone of the pivot points identified at $3.91 can be noted. At this stage, this would represent an increase of over 47%.

• If XRP fails to maintain above $2, a return towards $1.30 could be considered. The next support to consider, in case of a continuation of the bearish movement, would be around $1. This would then represent a decline of about 62%.

Conclusion

XRP has experienced impressive progress, marked by strong bullish momentum and a break through several resistances. Despite a slight pullback, the overall trend remains positive, supported by solid fundamentals and a resurgence of investor interest. However, the recent volatility could herald a phase of consolidation or a correction before a possible resumption of upward movement. Thus, it will be essential to closely monitor the price reaction at key levels to validate or revise the current forecasts. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can evolve rapidly based on other fundamental factors.