The XRP price has seen a sharp reversal in recent days, erasing some of its explosive gains from the past month. This downturn comes at a time when Bitcoin (BTC) has surged past $100,000, igniting a broader altcoin rally. The question on every investor’s mind is whether Ripple’s bullish momentum has run its course or if a resurgence is on the horizon.
XRP Price Action: Key Levels to Watch
XRP skyrocketed by nearly 500% from November 1 to December 3, a rally that positioned the token as one of the top performers in the ongoing crypto bull market. However, recent profit-taking has tested the token’s resilience. On the daily chart, XRP appears to be forming either a hammer or a doji candlestick pattern — both of which often indicate potential bullish reversals.
A critical level to monitor is $2.1793. A daily close above this threshold could pave the way for a rebound, with analysts eyeing a retest of the year-to-date high at $2.90. A breakout beyond that level could send XRP toward its all-time high of $3.37 or higher, with some bullish projections placing its near-term target between $3 and $5. Conversely, a close below $2.1793 might signal further downside, potentially dragging the token to the 50% Fibonacci retracement level at $1.6475.
The Ripple Outlook: Fundamentals Bolster Confidence
Despite the technical pullback, Ripple’s fundamentals remain strong. A significant development is the appointment of Paul Atkins as the next chair of the U.S. Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has praised Atkins as a “common-sense” choice, potentially signaling a regulatory shift favorable to the crypto industry. The appointment could provide clarity on XRP’s regulatory status, a lingering issue that has weighed on its price.
Additionally, Ripple is advancing plans to launch RLUSD, a stablecoin designed for institutional use. Pending approval from the New York Department of Financial Services, RLUSD aims to complement XRP in facilitating seamless cross-border payments — a core focus of Ripple’s strategy.
What’s Next for XRP?
The fate of XRP’s bull run hinges on its near-term price action. A daily close above $2.1793 would likely signal strength, allowing the rally to resume or consolidate. However, a drop below this level could indicate a temporary pause as the market digests recent gains.
The broader crypto market’s bullish sentiment also provides tailwinds for XRP. Bitcoin’s historic surge past $100,000, rising altcoin dominance, and a crypto fear and greed index above 80 suggest that investor enthusiasm remains robust.
Also Read: XRP Price Targets $17 and $27: EGRAG Crypto’s Bullish Chart Signals Massive Growth Ahead
In conclusion, while XRP’s recent price action has introduced caution, the combination of technical resilience and strong fundamentals hints that the bull run may not be over. Investors should watch the $2.1793 level closely as the deciding factor for XRP’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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