The month of December has been disappointing for XRP. The token hasn’t been able to recover a position above $0.68 and at the time of writing, it was below its immediate support turned resistance at $0.52. The bullish momentum had slowed down but there were signs of short-term revival. However, it might be a little more difficult than expected to rally back above its press time resistance levels.
XRP 1-hour chart
Source: XRP/USD on Trading View
As illustrated by the chart, XRP gradually declined in value this month and on 12 December, it dropped under the support at $0.52. While the price has continued to decline, its movement has been restricted under a falling wedge pattern. A falling wedge pattern leads to a bullish breakout but at press time, the likeliness of such a turnaround seemed minimal. XRP was valued at $0.484, and the asset has to re-trace from $0.46 to have any chance of pulling back above $0.52.
There were a couple of mixed signals too. The 50-Moving Average was signifying high selling pressure as the asset tumbled under the indicator. However, a major bullish indicator was the fact that the trading volume had declined alongside price, so any surge in volume may trigger a bull run.
Market Reasoning:
Source: XRP/USD on Trading View
Stochastic RSI would allow XRP traders to be optimistic as the blue line appeared to complete a bullish crossover around the oversold region, a development that may trigger a surge over the next few hours. The Awesome Oscillator or AO was extremely bearish, with bears pulling in higher momentum.
The MACD continued to indicate a bearish trend, but the RSI may trigger a reversal soon.
Important Ranges
Resistance: $0.68, $0.52
Support: $0.46, $0.42
Too risky and uncertain to open a long position
Conclusion
While XRP did have the signals indicating a bullish rise, the collective market at press time was dull so, the asset surging on its own is a long stretch. However, the asset may recover a position above $0.52 if a positive re-test is attained at the $0.46-support level.
