XRP Price Pattern Shows Anomaly, Despite Struggles Will XRP Price Recover?

XRP’s recent decline marks a notable pullback from its robust November rally, with the cryptocurrency currently trading at $2.14, representing a 26% drop from its December peak of $2.89. The sell-off has pushed XRP into a bear market, as bearish sentiment dominates the broader cryptocurrency landscape. However, underlying metrics and technical patterns suggest that a bullish recovery may be on the horizon.

Key Factors Behind XRP’s Decline

Falling Futures Open Interest: XRP’s futures open interest has dropped significantly, signaling reduced speculative interest. According to CoinGlass, open interest fell to $1.89 billion on Monday, a sharp decline from the year-to-date high of over $4.29 billion.

Declining Daily Volume: Ripple’s daily trading volume has seen a substantial dip, with 24-hour volumes now hovering around $10 billion, much lower than the levels seen during its peak activity in November.

Lower Social Sentiment: XRP’s social sentiment score has weakened, reflecting a decline in retail and institutional enthusiasm for the coin over recent weeks.

Positive Fundamentals Supporting XRP’s Resilience

Despite the short-term bearish outlook, XRP has several factors working in its favor.

Strong Holder Base: According to Santiment, XRP’s holder count stands at over 5.75 million, a marked increase from 5.36 million in October. This suggests that large holders remain confident in XRP’s long-term potential.

Ripple’s USD Stablecoin Launch: The market cap of Ripple’s recently launched USD stablecoin, RLUSD, has surged to $53 million within a week of its debut. While CoinMarketCap notes that RLUSD’s assets remain unverified, the stablecoin’s adoption could drive additional use cases for Ripple’s ecosystem.

Spot ETF Prospects: Anticipation is growing for the approval of a spot XRP ETF in 2025, which could significantly boost demand and liquidity. President-elect Donald Trump’s pro-crypto stance, coupled with his formation of a crypto advisory council, adds further optimism to this scenario.

Technical Analysis: Signs of a Potential Rebound

XRP’s daily chart reveals the formation of a bullish pennant pattern, a continuation signal that often precedes upward price movements.

Pattern Details:

• The lower triangle connects recent lows on December 10 and December 20.
• The upper triangle aligns with swing highs on December 3 and December 17.
• Consolidation within this triangle pattern suggests that a breakout may be imminent.

Moving Averages: XRP remains above the 50-day moving average, a key indicator of medium-term bullish momentum.

Murrey Math Lines: The coin is at the weak stop & reverse (SAR) point, an area that often serves as a launching pad for price reversals.

Outlook and Targets

While XRP’s recent decline reflects broader market uncertainty, its fundamentals and technical indicators suggest that the cryptocurrency remains well-positioned for a potential rebound. The immediate resistance lies at $2.20, with analysts targeting a retest of the year-to-date high of $2.90 if bullish momentum builds.

However, XRP must maintain support above $2.10 to avoid further downside risks, which could push the price toward $1.96.

Conclusion

XRP’s recent price action highlights the volatile nature of the cryptocurrency market, driven by both macroeconomic factors and internal developments. While the coin has experienced a sharp pullback, its strong holder base, rising stablecoin adoption, and favorable technical setup provide a foundation for optimism. As market conditions stabilize, XRP may find itself poised for another rally, with long-term catalysts like a potential spot ETF approval and Trump’s crypto-friendly policies acting as tailwinds.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

How to Stake XRP (XRP)

XRP to USD: Convert Ripple to US Dollar

FAQs

What factors have contributed to XRP's recent price decline? XRP's decline is attributed to several market dynamics, including a drop in futures open interest, decreasing daily trading volumes, and weakened social sentiment. These indicators reflect reduced speculative interest and overall bearish sentiment in the broader cryptocurrency landscape.

Are there any positive signs for XRP's recovery despite its struggles? Yes, XRP shows promising fundamentals, including a growing holder base, the launch of Ripple’s USD stablecoin (RLUSD), and optimism surrounding the potential approval of a spot XRP ETF in 2025. Additionally, technical patterns suggest a possible bullish rebound, supported by its position above key moving averages.

What are the critical price levels for XRP to watch? XRP must maintain support above $2.10 to prevent further declines toward $1.96. On the upside, breaking resistance at $2.20 could signal a rally, with analysts targeting a retest of the year-to-date high of $2.90 if bullish momentum strengthens.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.