The cryptocurrency market faced a sharp downturn after the Federal Reserve announced a 0.25% interest rate cut. XRP was notably impacted, plunging 18% from $2.7 to $2.2. This sell-off coincided with Bitcoin’s retreat from $108,000 to $100,000, triggering a wave of losses across altcoins. However, crypto analyst EGRAG suggests that XRP’s recent price action may signal a potential recovery.
Bulls Step Up After Sharp Decline
EGRAG’s analysis highlights XRP’s resilience following its steep decline. After falling to $2.2, the asset found solid support within the $2.17–$2.27 range. XRP is currently trading below its 21-period Exponential Moving Average (EMA) at $2.39, which serves as a critical resistance level. Despite this, EGRAG notes a bullish formation on the 1-hour chart: a double-bottom pattern.
#XRP Quick Update 1 Hour Time Frame ( UPDATE):
— EGRAG CRYPTO (@egragcrypto) December 18, 2024
The #BULLS has Stepped IN. Trust the Process https://t.co/xQDzxuveIx pic.twitter.com/8fljp7iDYM
This pattern began with XRP’s dip to $2.33 on December 16, followed by a recovery to $2.7, fueled by the launch of Ripple’s stablecoin RLUSD. The second bottom was confirmed after the recent drop to $2.17. If XRP consolidates within the support range, it could set the stage for an uptrend. A breakout above the $2.7 neckline would validate the pattern and signal further gains.
Key Technical Indicators Signal Optimism
EGRAG’s chart analysis reveals promising technical indicators for XRP. The Relative Strength Index (RSI) aligns with price trends, hovering near the 70 mark. A breakout above this level could push the RSI towards 90, signaling stronger bullish momentum.
Additionally, the Moving Average Convergence Divergence (MACD) indicator has turned bullish, with its histogram bars flipping upward. The Average Directional Index (ADX) also hints at an improving market outlook, suggesting XRP may be poised for recovery.
Recovery Scenarios for XRP
EGRAG previously outlined two potential scenarios for XRP’s short-term price action. The current trend aligns with Scenario B: consolidation within the $2.17–$2.27 range, forming a double-bottom pattern. This phase could allow key moving averages to align, creating a robust foundation for sustained growth.
If the double-bottom formation materializes, XRP could reclaim the $2.5 level and potentially test higher resistance levels. As of this morning, XRP trades at $2.35, marking a 1.89% uptick, hinting at early signs of recovery.
#XRP – Quick Update on the 1-Hour Timeframe!
— EGRAG CRYPTO (@egragcrypto) December 13, 2024
Here’s the latest breakdown for XRP’s next moves:
🔹 Scenario A:
✅Range: Between $2.27 and $2.50
✅Outcome: A breakout to the upside!
🔹 Scenario B:
✅Dip: Break down to $2.27
✅Range: Consolidate between $2.17 and $2.27… pic.twitter.com/IlC2ECe4L4
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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